Billionaire Charlie Ergen is consolidating his telecom empire, merging his satellite and broadband services 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.
The deal reunites two businesses that have been separate for about 15 years, as Ergen spun EchoStar out of Dish in 2008.
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.
EchoStar CEO Hamid Akhavan will continue on as part of the combined company, as President and CEO.
Persons:
Charlie Ergen, Ergen, EchoStar, Hamid Akhavan, Erik Carlson, Akhavan, CNBC's David Faber
Organizations:
Dish Network