Charlie Ergen is close to finalising an agreement that would see a merger between his two major holdings, Dish Network and EchoStar.
The move would provide him with the financial flexibility to build a US-wide wireless network capable of taking on industry giants like AT&T and Verizon.
Sources familiar with the matter told Wall Street Journal an announcement could come later today (Tuesday).
The transaction would reunite Dish’s pay-TV business and its emerging 5G network with EchoStar’s satellite communication infrastructure. Charlie Ergen, the billionaire telecommunications entrepreneur, maintains control over both companies, each of which contributes different components to a conglomerate built over four decades.
Dish Network caters to a substantial customer base through its pay-TV and cellphone services, which include brands like Sling TV and Boost Mobile. In addition, Dish has amassed valuable spectrum licenses to support its aspirations in the wireless domain. On the other hand, EchoStar operates a fleet of satellites that deliver services to HughesNet home-internet users, as well as to various business and government clients.
The current CEO of EchoStar, Hamid Akhavan, is expected to serve as president and chief executive of the combined company.
Ergen stepped down as Dish’s CEO in 2017, but continues to serve as the chairman of both entities.
