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DISH Network (NASDAQ:DISH) shares fell more than 4%, near session lows, after it was reported that the Charlie Ergen-led company may merge with another Ergen-controlled entity, EchoStar (NASDAQ:SATS).
A combination of DISH Network (DISH) and EchoStar (SATS) could help to stave off the decline in the satellite TV business, with EchoStar seen as a stronger financial entity, Semafor reported, citing people familiar with the matter.
Dish (DISH) has $22B in debt on its balance sheet, whereas EchoStar (SATS) has just $1.5B in long-term debt, according to its most recent quarterly results.
Dish (DISH) is currently in the process of building out a nationwide 5G mobile network that has run into delays. Several years ago, Dish acquired Boost Mobile after T-Mobile (TMUS) merged with Sprint.
The Ergen-led Dish (DISH) has spent more than $30B on its spectrum and is in the process of satisfying requirements by the FCC to reach 70% of the U.S. with its 600 MHz licenses.
In May, it was reported that Ergen had flown to Dubai to try to get funding from investors for Dish Network (DISH).
EchoStar (SATS) shares fluctuated after the report, with the stock trading up more than 0.5%.
Neither Dish nor EchoStar immediately responded to a request for comment from Seeking Alpha.
Last month, Dish Network (DISH) said its chief operating officer, Narayan Iyengar, was leaving the company, effective June 23, but would provide transition support for a "brief period of time."
More on Dish Network
"dish" - Google News
July 06, 2023 at 11:08PM
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DISH Network sinks on report it may merge with EchoStar (DISH) - Seeking Alpha
"dish" - Google News
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