EchoStar Corporation

History

2023: Dish Wireless bought EchoStar Corporation

On August 8, 2023, Dish Network Corporation, the world's largest satellite television operator, announced the conclusion of a deal to acquire a competitor - EchoStar Corporation. The transaction amount is approximately $4 billion.

Under the terms of the signed agreement, EchoStar Corporation shareholders will receive 2.85 Class "A" DISH Network common shares for each ordinary of their Class "A," "C" or "D" security. Owners of EchoStar class "B" shares will receive 2.85 Dish shares of the same class for each such paper. It is noted that the exchange ratio is a premium of 12.9% for EchoStar shareholders - this follows from the weighted average share prices of the two companies for 30 days at the time of closing on July 5, 2023.

Dish Network bought a competitor in a $4 billion deal

The combined company will have its headquarters in Englewood, Colorado. Services are planned to be provided under a number of brands, including Dish Wireless, Boost Wireless, Sling TV and Dish TV, as well as EchoStar, Hughes and Jupiter, HughesON and HughesNet.

Dish's capitalization at the beginning of August 2023 is approximately $4.04 billion, EchoStar - about $1.62 billion. The deal is said to combine Dish's satellite technology and streaming services with a nationwide 5G network and EchoStar's satellite communications solutions.

The combined company will reportedly have expanded capabilities to provide a wide range of communications and content delivery services. In addition, the organization will be able to strengthen the presence of satellite and wireless solutions in the market.

Upon completion of the merger, existing Dish Network shareholders will own approximately 69% of the combined company. Existing EchoStar Corporation shareholders will receive the remaining 31%. Once the deal closes, Hamid Akhavan will become president and CEO of the combined company.^[1]

Notes