News

Pay-TV provider Dish Network has announced plans to merge with satellite communications vendor EchoStar in an all-stock deal. Dish, founded by billionaire Charles Ergen, will combine its Pay-TV business and 5G wireless network with EchoStar’s satellite communications solutions. Ergen, who owns over half of Dish’s outstanding shares and nearly 60% of EchoStar, will serve as executive chairman of the combined company. EchoStar’s CEO Hamid Akhavan will lead the merged company. The deal is expected to be completed by the end of the year.

Dish has been focused on expanding its cellular wireless offerings, but faces tough competition from larger carriers such as AT&T and Verizon Communications. EchoStar owns a bank of satellites that serve various customers, including the U.S. government, media organizations, and Hughes Network home customers. The merger will allow Dish to leverage EchoStar’s satellite capabilities to enhance its service offerings.

Under the terms of the deal, EchoStar stockholders will receive 2.85 shares of Dish Network’s Class A common stock. This represents a 12.9% premium to EchoStar’s closing price on July 6, when reports of a possible merger first emerged. Dish’s market value is currently valued at .07 billion, while EchoStar’s market value is .97 billion.

The merger between Dish Network and EchoStar will create a stronger entity in the pay-TV and satellite communications industry. With Dish’s existing Pay-TV business and 5G network combined with EchoStar’s satellite capabilities, the merged company will be well-positioned to provide innovative and comprehensive services to its customers.

The post Dish Network to Merge with EchoStar in All-Stock Deal appeared first on ISP Today.