In a significant move aimed at creating a formidable force in the telecommunications industry, Dish Network and EchoStar have officially concluded their merger. The strategic integration combines Dish Network’s satellite, streaming, and mobile operations with EchoStar’s robust satellite business, realizing the vision of establishing a ‘global leader’ in both terrestrial and non-terrestrial wireless connectivity.
The merger, announced in August following earlier speculations, positions the newly formed company uniquely to provide an extensive array of communication and content distribution capabilities. Dish’s 5G wireless network now blankets over 70% of the United States population. EchoStar contributes to the momentum with the recent launch of its Jupiter 3 satellite, specifically designed for converged terrestrial and non-terrestrial services.
Hamid Akhavan, President and CEO of EchoStar, expressed optimism about the merger’s impact on connectivity, stating, “This merger brings us one step closer to our goal of offering ubiquitous connectivity to people, enterprises, and things, everywhere.” Akhavan highlighted the combined strengths of the two companies, emphasizing the superior portfolio of technology, spectrum, engineering, manufacturing, and network management expertise that will deliver unparalleled connectivity solutions.
Charles Ergen, Executive Chairman of the Board of EchoStar, added that the completion of the merger marks an important milestone, ushering in a new era of connectivity. He stressed the companies’ complementary portfolios, creating a global connectivity leader with premier wireless, satellite, and video distribution capabilities.
While the announcement underscores the technological and business synergies, financial considerations also played a role in the merger. Dish reported a net loss of $139 million in the three months ending September, prompting strategic moves, including job cuts affecting ‘over 500’ employees. As part of the merger, Dish will continue as a wholly-owned subsidiary of EchoStar, with the official merger date set for February 21, 2024. The consolidation aims to drive revenue and profitable growth in an increasingly wireless world.