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TAMPA, FL – Satellite broadcaster and terrestrial wireless operator Dish Network and its satellite broadband subsidiary EchoStar have cleared a major hurdle in their merger.
On December 6, the Federal Communications Commission/FCC approved the transfer of all of Dish Network’s licences and rights to EchoStar, which will become the successor upon completion of the transaction.
The FCC approval is one of the final conditions to the completion of the merger, which was announced approximately four months ago 22. According to Rick Prentiss, an analyst with the financial firm Raymond James, a plan to merge the companies, which are already under the leadership of billionaire Charlie Ergen, will be drawn up soon.
Prentiss also reports that the merger could be completed by the end of this week, although the companies may push the closing closer to the end of the year to simplify accounting.
Eric Carlson stepped down as CEO of Dish Network in November to make way for EchoStar CEO Hamid Akhavan.
Dish Network split from EchoStar in 2008 to expand its terrestrial mobile and online streaming services as its satellite TV business began to lose ground to cable TV rivals.The company is investing heavily in its 5G network in the US to diversify revenues in a financially constrained environment.
Meanwhile, EchoStar has around $2 billion in cash reserves and expects to add more broadband subscribers in the coming weeks once Jupiter-3, the world’s heaviest telecommunications satellite23, is operational.
In an official FCC announcement, the FCC said that Ergen will hold 90 per cent of the voting shares and approximately 54 per cent of the equity of the company resulting from the merger. According to the regulator, the change in ownership and control of Dish Network’s licences and authorisations following the transaction will not be material.
