EchoStar and Dish merger completes

The deal was announced in August after rumours on the matter emerged a month before. It was pitched as a move to create a ‘global leader’ in terrestrial and non-terrestrial wireless connectivity.  

Both firms have ‘strong momentum’, says today’s release, with Dish’s 5G wireless network apparently now covering more than 70% of the US population, and the launch of EchoStar's Jupiter 3 satellite which is designed for converged terrestrial and non-terrestrial services. 

The new combined company is ‘uniquely positioned’ to deliver a broad set of communication and content distribution capabilities, we’re told, ‘accelerating the delivery of satellite and wireless connectivity solutions desired by customers.’

"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."

Charles Ergen, Executive Chairman of the Board of EchoStar added: "The completion of this merger marks an important milestone for our company and our customers, launching a new era of connectivity. We have brought together two trailblazing companies with complementary portfolios to create a global connectivity leader with premier wireless, satellite, and video distribution capabilities. Together, EchoStar and DISH offer an enhanced consumer connectivity business and an unmatched enterprise managed services business. In a world that is increasingly wireless, we are well-positioned to drive revenue and profitable growth."

Much is made of technology and business synergies in the announcement, but the deal seems to be at least in part be motivated by finance. Dish clocked a net loss of $139 million in the three months to the end of September as its top line contracted by almost 11% to $3.7 billion. It shed around 64,000 pay TV customers, while its retail mobile base dropped by a net 225,000. In November it said it was making job cuts, affecting ‘over 500’ employees.

Dish didn’t appear to get a quote in today’s EchoStar press release, but it did put out this statement written in some notably crunchy legalise, in which it said: “Dish survived the merger as a wholly owned subsidiary of EchoStar” and that the date of the merger would be February 21 2024.