Billionaire Charlie Ergen is merging his telecom empire by consolidating his satellite and broadband services companies, Dish Network and Echostar, in an all-stock deal. The deal reunites two businesses that have been separate for about 15 years, as Ergen spun EchoStar out of Dish in 2008.

As of Monday’s close, EchoStar had a market value of nearly $2 billion, while Dish’s market value was just above $4 billion. The merger will exchange 2.85 shares of Dish common stock for each share of EchoStar stock, providing a 12.9% premium for EchoStar shareholders.

Ergen, chairman of both Dish and EchoStar, stated, “This is a strategically and financially compelling combination that is all about growth and building a long-term sustainable business.”

EchoStar CEO Hamid Akhavan will continue on as part of the combined company, serving as President and CEO. However, Erik Carlson, the current president and CEO of Dish, will leave after the transaction closes.

The consolidation aims to create a stronger and more sustainable business with increased growth opportunities. The companies believe that merging will lead to greater synergies and enhance their competitive position in the telecom industry.

The merger announcement comes following media speculation regarding a potential combination of Dish Network and EchoStar. The consolidation is expected to bring about significant changes in the telecom market and could result in further developments in the future.

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