Dish Network and EchoStar consider merger
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.