: Billionaire Charlie Ergen is combining Dish and EchoStar in all-stock deal, confirming earlier reports

Billionaire Charlie Ergen is combining his two telecom companies, pay-TV provider Dish Network Corp. DISH and satellite-communications company EchoStar Corp. SATS in an all-stock deal, the companies said Tuesday, confirming a report by the Wall Street Journal late Monday. Upon closing, EchoStar shareholders will receive 2.85 Dish shares for each share of EchoStar Corporation Class A, Class C or Class D common stock and 2.85 shares of DISH Network Class B common stock for each share of EchoStar Corporation Class B common stock they own. The exchange ratio is equal to a premium of 12.9% over the unaffected 30-day volume weighted average closing stock prices of the two companies on July 5, the last full trading day before media speculation regarding a potential transaction. “The transaction combines DISH Network’s satellite technology, streaming services and nationwide 5G network with EchoStar’s premier satellite communications solutions, creating a global leader in terrestrial and non-terrestrial wireless connectivity,” the companies said in a joint statement. It’s expected to generate significant cost and revenue synergies and enhance free ash flow. “This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business,” said Ergen. The deal is expected to close by year-end. Dish’s stock was down 0.1% while EchoStar was down 1.2% premarket.

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