Dish buys EchoStar satellite business in deal valued at $800 million
Dish Network Corp. has reached an agreement with sister company EchoStar Corp. to acquire EchoStar’s Broadcast Satellite Service business, including nine direct broadcast satellites and the key employees responsible for satellite operations.
The all-stock deal is valued at about $800 million and includes licensing for an orbital slot and select real estate properties, all in exchange for about 22.9 million shares of Dish stock that will be distributed to EchoStar (Nasdaq: SATS) shareholders.
This isn’t the first time Dish (Nasdaq: DISH) acquired EchoStar assets: The company did so in 2017 to deliver better customer experiences to Dish TV and Sling TV customers. At the time, key broadcast satellite operations remained with EchoStar, and this transaction brings them into the fold for Dish.
Both Dish and EchoStar are intertwined. EchoStar is the owner and operator of the Dish satellite fleet and prior to the 2017 transaction designed and manufactured the set-top boxes for Dish. Charlie Ergen is the founder of both Englewood businesses.