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EchoStar Completes Dish Network Acquisition: ‘A New Era of Connectivity’

January 2, 2024
in General
EchoStar Completes Dish Network Acquisition: ‘A New Era of Connectivity’
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January 2, 2024 @ 7:00 AM

EchoStar Corp. on Tuesday said it completed its re-acquisition of Dish Network on Tuesday, making the satellite television provider a wholly owned subsidiary of the company that spun it off in 2008.

The all-stock deal, which was announced in August, was completed on Dec. 31, the company said. With the companies combined, existing Dish shareholders now own about 69% of tthe combined company, while existing EchoStar holders now own about 31%.

The goal behind the effort is to move Dish away from the subscriber-shedding pay-TV business and into wireless services. Dish is in the midst of building out its 5G wireless network, which the company said now covers more than 70% of the U.S., and now has more access to cash to complete that effort. In the third quarter, however, Dish’s Boost Mobile also lost wireless subscribers, ending the period with 7.5 million, a decline of 225,000.

Dish also owns the advertising supported streamer SlingTV.

EchoStar said the combined company is “uniquely positioned to deliver a broad set of communication and content distribution capabilities, accelerating the delivery of satellite and wireless connectivity solutions desired by customers.”

The deal “brings us one step closer to our goal of offering ubiquitous connectivity to people, enterprises and things, everywhere,” said EchoStar CEO Hamid Akhavan in a statement. “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.”

Akhavan was named president and CEO of both companies in November. Charlie Ergen, the chairman and co-founder of both companies, is now executive chairman of the combined company.

“The completion of this merger marks an important milestone for our company and our customers, launching a new era of connectivity,” Ergen said in a statement. “We have brought together two trailblazing companies with complementary portfolios to create a global connectivity leader with premier wireless, satellite, and video distribution capabilities.”

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“In a world that is increasingly wireless, we are well-positioned to drive revenue and profitable growth,” Ergen said.

Shares of EchoStar slipped 18 cents to $16.39 in morning trading Tuesday as the broader market trended down.

>>> Read full article>>>
Copyright for syndicated content belongs to the linked Source : TheWrap – https://www.thewrap.com/echostar-dish-network-acqusition-complete/

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