For years there have been talks of a possible DIRECTV and DISH merger. Recently a possible merger between DIRECTV and DISH looks a little more realistic. Now though, as conditions for a possible merger are finally favorable, the talks have reportedly stalled over possible money issues at Dish. This comes from a report by the New York Post, which says sources claim talks between DISH and DIRECTV have stalled as Dish struggles to find money for its operations.
Now it seems DISH may be looking at other merger options as DISH and EchoStar have reportedly started to look at merging. Both companies are majority owned by Charlie Ergen. According to a report from Semafor, the two companies have hired advisers to look at merging the companies.
Here is how EchoStar describes their company.
EchoStar Corporation (NASDAQ: SATS) is a premier global provider of satellite communication solutions. Headquartered in Englewood, Colo., and conducting business around the globe, EchoStar is a pioneer in secure communications technologies through its Hughes Network Systems and EchoStar Satellite Services business segments.
This would, in the end, bring the two companies back together. In 2008 EchoStar Communications was renamed to DISH Network, and EchoStar Corp was spun off into its own technology company.
Now as DISH struggles to become a wireless phone company to compete with AT&T, T-Mobile, and Verizon, merging the companies could help it do just that. DISH reportedly needs $3 billion to meet a 2025 deadline from the FCC to offer service to 75% of Americans.
A merger between the two companies could help DISH raise the capital it needs to finish its wireless phone plans as it deals with the growth of cord cutting.
For consumers, this deal will likely mean little for now. In the long run, it could help DISH become the wireless phone competitor to take on the big three that currently dominate wireless service.
A merger of DISH and EchoStar shouldn’t be seen as an end of a possible DIRECTV merger. It is still very possible that DISH and DIRECTV may still work out a deal to merge their satellite TV services.