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Dish Network and EchoStar consider merger

Kerry Flynn
Jul 7, 2023

Illustration: Brendan Lynch/Axios

Dish Network and EchoStar chairman Charlie Ergen is exploring a merger of his two telecom businesses, Semafor reports.

Why it matters: The potential merger would reunite two satellite TV businesses as they navigate the sector's decline.

Details: The companies have engaged advisers, Semafor reports, citing people familiar with the matter.

  • EchoStar had spun out from Dish in 2008. Now, they're each in much different financial positions. Dish's stock is down 62% over the past year, whereas EchoStar's stock is down 7%.
  • As Semafor's Liz Hoffman writes, "A merger between Dish and EchoStar may make business sense, but it's a governance nightmare. Dish has $22 billion of debt, more than 10 times its annual cash flow. EchoStar is essentially debt-free."
  • Dish and EchoStar did not respond to requests for comment.
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