SATS - Dish Network EchoStar nearing deal to merge - report

2023-08-08 00:03:02 ET

Charlie Ergen is nearing a deal to merge Dish Network ( NASDAQ: DISH ) and EchoStar ( NASDAQ: SATS ).

An announcement on a deal may come as soon as Tuesday, according to a WSJ report late Monday. Exact terms of the transaction couldn't be learned, though the price for EchoStar ( SATS ) may be lower than where EchoStar closed on Monday after jumping 21% ahead of its Q2 results on Tuesday.

The price is still expected to be a premium to the $17 where the stock traded in recent weeks. EchoStar ( SATS ) traded around $17 on July 5, the day before a Semafor report that Ergen was looking to merge his two companies.

A combination of DISH Network ( DISH ) and EchoStar ( SATS ) could help stave off the decline in the satellite TV business, with EchoStar seen as a stronger financial entity, Semafor reported a month ago. EchoStar has a market cap of about $2 billion, while DISH is valued at around $4.1 billion.

On Monday, investment firm Raymond James upgraded EchoStar, citing its position at a "critical juncture" in the industry.

More on EchoStar

• EchoStar Corporation Q1 2023 Earnings Call Transcript
• EchoStar, Maxar revise deal for satellite launch after delays

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