Billionaire Charlie Ergen Considering Combining Dish Network and EchoStar
Billionaire Charlie Ergen is considering merging Dish Network and EchoStar to create a national wireless network, challenging AT&T and Verizon.
Reported by the Wall Street Journal
Billionaire Charlie Ergen is reportedly contemplating a merger between his two telecom companies, Dish Network Corp. and EchoStar Corp., with an announcement expected as early as Tuesday.
Dish Network, with a valuation of approximately $4 billion, and EchoStar, with a market cap of about $1.6 billion, may strike a deal at a price lower than EchoStar's current stock price. The latter experienced a surge of 21% on Monday, reaching $23.50, following months of remaining in the $15-$18 range.
As the sole controller of both companies, Ergen aims to gain financial flexibility through this merger. The move would enable him to establish a national wireless network, ultimately posing a challenge to AT&T Inc. and Verizon Communications Inc. Dish Network's portfolio already includes wireless company Boost Mobile and it has been actively constructing a nationwide 5G network.
EchoStar split from Dish Network in 2008.
Unfortunately, Dish Network shares have been experiencing their lowest levels since 1999. Year to date, Dish shares have plummeted by 46%, while EchoStar's shares have enjoyed a 41% increase.