Dish Network merges operations with EchoStar

DISH Network Corporation and EchoStar Corporation have agreed upon a definitive agreement for Dish Network to combine with EchoStar Corporation in an all-stock merger at a fixed exchange ratio. "This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business," Charles Ergen, Chairman of the Board of both Dish Network and EchoStar said. "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."

The transaction was negotiated and recommended by Special Committees of Independent Directors of both companies and unanimously approved by the Boards of Directors of both companies. The combined company, based in Englewood, Colorado, will operate in the global market under a suite of proven consumer and business brands, including Dish Wireless, Boost Wireless, Sling TV and DISH TV, as well as EchoStar, Hughes and Jupiter satellite services, HughesON managed services and HughesNet® satellite internet. "The transaction is expected to generate significant cost and revenue synergies, and the strong asset portfolio of the combined company paired with its enhanced free cash flow generation capability and strengthened capital structure are expected to drive long-term value creation for our shareholders and other stakeholders," Ergen said.

Upon closing of the transaction, EchoStar Corporation stockholders will receive 2.85 shares of DISH Network Class A common stock for each share of EchoStar Corporation Class A, Class C or Class D common stock and 2.85 shares of DISH Network Class B common stock for each share of EchoStar Corporation Class B common stock they own. The exchange ratio represents a premium of 12.9% to EchoStar stockholders as implied by the unaffected 30-day volume weighted average closing stock prices of the two companies on July 5, 2023, the last full trading day prior to media speculation regarding a potential transaction.

"From unconnected individuals in the most rural and remote regions of the world to the constantly evolving networks of private enterprises and government institutions, the connectivity landscape is rapidly changing," Hamid Akhavan, President and Chief Executive Officer of EchoStar said. "As a combined company, we will offer a broad suite of robust connectivity services, using a superior portfolio of technology, spectrum, engineering, manufacturing and network management expertise. DISH shares our customer-first culture, and together we will be well positioned to further scale and accelerate our strategy."

The transaction combines Dish Network's satellite technology, streaming services and nationwide 5G network with EchoStar's premier satellite communications solutions, creating a global leader in terrestrial and non-terrestrial wireless connectivity. Both companies have strong momentum, highlighted by DISH's 5G wireless network that now covers more than 70 percent of the U.S. with full commercialization underway and the successful launch of EchoStar's Jupiter 3 satellite with significant available capacity for converged terrestrial and non-terrestrial services. THe move will help leverage the combined copmany's position to deliver a broad set of communication and content distribution capabilities, accelerating the delivery of satellite and wireless connectivity solutions desired by customers.

"The combination of DISH and EchoStar brings together two trailblazers with complementary portfolios and a shared commitment to change the way the world communicates," Erik Carlson, President and Chief Executive Officer, DISH Network said. "DISH is transforming America's wireless infrastructure with its 5G technology. With EchoStar's engineering capabilities, managed network services delivery and worldwide S-band spectrum rights, the combined company will have greater resources and the financial flexibility to deliver connectivity to consumers, enterprises and governments around the world."