TAMPA, Fla. — Satellite TV broadcaster Dish Network is rumored to be considering recombining with internet-focused sister company EchoStar to strengthen its financial resources.
The businesses have engaged advisers to flesh out a possible deal, reported news publication Semafor July 6, citing people aware of the matter.
Dish and satellite fleet operator EchoStar — each controlled by billionaire Charlie Ergen — declined to comment on the speculation.
A deal would wish to navigate starkly contrasting financial standings following their split into separate corporations and stocks back in 2008.
Dish has been investing heavily to satisfy regulatory deployment deadlines for expanding a terrestrial 5G network across the US, putting its balance sheet under strain as its core satellite TV business bleeds subscribers.
Meanwhile, EchoStar is sitting on $1.7 billion in money and is poised for subscriber and revenue growth from Jupiter 3, its long-awaited broadband satellite that Maxar recently delivered for a Falcon Heavy launch in the approaching months.
EchoStar sold underperforming broadcast satellite services assets to Dish in 2019, seemingly doubling down on the technique to keep their businesses apart.
Still, rumors a few potential recombination have periodically resurfaced out there through the years, in response to Raymond James analyst Ric Prentiss.
Notably, EchoStar CEO Hamid Akhavan’s Feb. 17, 2022, employment offer letter features a clause covering the potential for Dish owning greater than half of EchoStar’s voting stock.
Prentiss said he was unsurprised to see the speculation resurface again due to how difficult it’s to borrow money to finance Dish’s wireless plans in the present economic climate.
A mixture could also put perennial rumors to rest about one other try and merge Dish with its satellite broadcast rival DirecTV, majority owned by U.S. telecoms giant AT&T.
Earlier this 12 months, Dish was also said to be one in every of a handful of U.S. corporations in talks about selling wireless services through Amazon, in response to reports including Bloomberg and the Wall Street Journal.
Citing people aware of the situation, Bloomberg reported June 2 that Amazon was looking into offering a low-cost or free nationwide mobile service to Amazon Prime subscribers.
Amazon, which is working toward providing initial broadband services next 12 months from its proposed Project Kuiper satellite constellation, said in response that it was not currently planning so as to add wireless service to its Prime offering.
Its package of Amazon Prime services includes online TV streaming, which has contributed to the decline of the satellite broadcast market.