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Charles Ergen, chairman and co-founder of Dish Network Corp
Jonathan Alcorn | Bloomberg | Getty Images
Billionaire Charlie Ergen is consolidating his telecom empire, merging his companies DISH Network and EchoStar in an all-stock deal.
“This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business,” Ergen, chairman of both DISH and EchoStar, said in a statement.
As of Monday’s close, EchoStar had a nearly $2 billion market value, while Dish’s market value was just above $4 billion.
The deal reunites two businesses that have been separate for about 15 years, as Ergen spun EchoStar out of Dish in 2008.
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The merger will exchange 2.85 shares of Dish common stock for each share of EchoStar stock, a 12.9% premium for EchoStar shareholders as of the July 5 trading close. The companies noted that was “the last full trading day prior to media speculation regarding a potential transaction,” with Semafor reporting on July 6 that a potential combination was under consideration.
EchoStar CEO Hamid Akhavan will continue on as part of the combined company, as President and CEO. Erik Carlson, the current president and CEO of DISH, will leave after the transaction closes.
Ergen and Akhavan will join CNBC’s David Faber at 10:15 a.m. ET for an exclusive interview.
This is breaking news. Check back for updates.
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