(Reuters) – Pay-TV provider Dish Network plans to merge in an all-stock deal with satellite communications vendor EchoStar, the companies said on Tuesday.
Billionaire Charles Ergen, who co-founded Dish, owns more than half of its outstanding shares and owns nearly 60% of EchoStar, according to regulatory filings.
Shares of Dish were down 3%, while those of EchoStar slipped 1.2% in premarket trading.
Under terms of the deal, EchoStar stockholders will receive 2.85 shares of Dish Network Class A common stock.
Dish has focused on expanding its cellular wireless offerings, though it faces tough competition from larger carriers.
(Reporting by Akash Sriram and Savyata Mishra in Bengaluru; Editing by Varun H K)
