Dish Network and EchoStar are merging in an all-stock deal to create a $6 billion company. The merger aims to reunite Charlie Ergen's telecom empire and compete with larger U.S. carriers. The deal will combine Dish's pay-TV business and 5G network with EchoStar's satellite infrastructure, boosting cash flow and reducing capex needs.
The all-stock deal will combine Dish's pay-TV business and its 5G network with EchoStar's satellite infrastructure that serves retail, business and government clients, which, Ergen said, will boost their cash flow and reduce near-term capex needs.
"The transaction is predominantly about Dish getting access to the $1.7 billion of cash at EchoStar," New Street Research analyst Jonathan Chaplin said. "In addition to bolstering its liquidity, the combination will improve leverage for Dish." EchoStar stockholders will get 2.85 Dish Network's Class A shares, with the exchange ratio representing a 12.9% premium to EchoStar's close on July 5, a day beforeEchoStar's shares, which have gained about 38% since July 5, fell 5% in early trading on Tuesday. Dish's stock was up 4%.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Charlie Ergen Plans All-Stock Merger of Dish Network and EchoStarBillionaire satellite TV mogul, Charlie Ergen, is proposing a merger of his businesses, Dish Network and EchoStar, in an all-stock deal. The transaction is expected to generate cost and revenue synergies, enhance free cash flow generation, and create long-term value for shareholders and stakeholders.
Read more »
Billionaire Charlie Ergen reportedly set to merge Dish, EchoStarBillionaire Charlie Ergen may combine his two telecom companies, pay-TV provider Dish Network Corp. and satellite-communications company EchoStar Corp., the Wall Street Journal reported. A deal could be announced as soon as Tuesday.
Read more »
Sales of Lionel Messi's favorite dish spike at Dallas Argentine restaurantArgentine restaurant Chimichurri in Dallas' Bishop Arts District is hosting a special FC Dallas-Inter Miami watch party as one of Argentina's favorite sons, Lionel Messi, plays soccer a few miles away.
Read more »
How to Make Toasted Ravioli, an Iconic St. Louis DishLearn how to make the iconic St. Louis dish, Toasted Ravioli, by filling thin pasta dough with a mixture of ricotta and mozzarella, breading and frying until lightly crisp. Don't forget the marinara sauce for dunking!
Read more »
Dish Network Successfully Builds State-of-the-Art 5G Cellular NetworkDish Network, based in Englewood, has successfully built a state-of-the-art 5G cellular network that covers over 240 million U.S. residents in just three years, at a significantly lower cost compared to other wireless carriers.
Read more »