Today it was announced that EchoStar has completed the acquisition of DISH Network. The new company will be called EchoStar Corportation.
Last month, the Federal Communications Commission gave DISH the go-ahead on the merger. The new company will take on EchoStar’s name, but DISH will remain the pay-TV brand. For now, Sling TV — which is owned by DISH — shouldn’t see any changes.
DISH and EchoStar split in 2008 when the former wanted to focus on pay-TV and the latter on satellite and networking. The two companies’ reunion will help DISH’s aspirations of becoming a competitive wireless provider.
“This merger brings us one step closer to our goal of offering ubiquitous connectivity to people, enterprises and things, everywhere,” said Hamid Akhavan, President and Chief Executive Officer of EchoStar. “Together we’re better positioned to realize the connected future by leveraging every type of transport, combined with smart, enabling technologies and fully integrated services. Our superior portfolio of technology, spectrum, engineering, manufacturing and network management expertise will deliver the unparalleled connectivity solutions that customers demand.”
“This merger brings us one step closer to our goal of offering ubiquitous connectivity to people, enterprises and things, everywhere,” said Hamid Akhavan, President and Chief Executive Officer of EchoStar. “Together we’re better positioned to realize the connected future by leveraging every type of transport, combined with smart, enabling technologies and fully integrated services. Our superior portfolio of technology, spectrum, engineering, manufacturing and network management expertise will deliver the unparalleled connectivity solutions that customers demand.”
In addition, the cash influx from EchoStar will help pay down the telecom company’s mountain of debt that DISH racked up building out its 5G network.
DISH is obligated by the FCC to cover 75% of the country with its 5G network by 2025. In June, the company met the Commission’s benchmark for covering 70% of the U.S..
“This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business,” Charles Ergen, chairman of both companies, said when the merger was first announced in August. “Dish’s substantial past investments in spectrum and its wireless buildout, combined with EchoStar’s recent launch of JUPITER 3, are expected to significantly reduce near-term CAPEX requirements.”
Despite a switch up in October that revealed EchoStar would assume the role as parent company instead of DISH, Ergen will continue to serve as executive chairman. EchoStar CEO Hamid Akhavan has take over as leader once the company combines.