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Dish Networks and EchoStar have announced their plans to merge, bringing together their respective satellite communications and telecom businesses. Dish had previously spun EchoStar off as a separate company in 2008. As cord-cutting and competition impacted the satellite pay-TV industry, Dish shifted its focus to telecom, acquiring Boost Mobile and its wireless spectrum in 2020 to become the fourth national carrier.

The merger aims to create cost and revenue synergies and is expected to be finalized by the end of the year. The combined company will be headquartered in Englewood, Colorado and will encompass various consumer and business brands, including Dish Wireless, Boost Wireless, Sling TV, Dish TV, EchoStar, Hughes and Jupiter satellite services, HughesON managed services, and HughesNet satellite internet.

Charles Ergen, chairman of the board of both companies, expressed his confidence in the strategic and financial benefits of the merger. He highlighted Dish’s previous investments in spectrum and wireless infrastructure and EchoStar’s recent launch of the Jupiter 3 satellite. The merged company’s enhanced asset portfolio, increased free cash flow, and strengthened capital structure are expected to drive long-term value for shareholders and stakeholders.

With Dish’s 5G wireless network covering over 70% of the U.S. and EchoStar’s Jupiter 3 satellite providing ample capacity for terrestrial and non-terrestrial services, the combined company will have a strong foundation to offer a wide range of satellite and wireless communication and content distribution services.

Under the terms of the merger, EchoStar stockholders will receive 2.85 common shares of Dish for each share of EchoStar. Dish Network shareholders will own approximately 69% of the combined company, while EchoStar shareholders will own 31%. The CEO of EchoStar, Hamid Akhavan, will lead the merged company, while Dish Network’s CEO, Erik Carlson, will depart upon completion of the deal. Charles Ergen will serve as executive chairman, and John Swieringa, currently the COO of Dish Wireless, will assume the role of COO in the merged company.

Overall, the merger between Dish Networks and EchoStar aims to create a powerful player in the satellite communications and telecom industry, combining their respective strengths to drive growth and long-term sustainability.

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