Echostar - Dish Network merger complete

[TheForce]

ENGLEWOOD, Colo., Jan. 2, 2024 /PRNewswire/ -- EchoStar Corporation (Nasdaq: SATS) ("EchoStar") announced today the completion of its acquisition of DISH Network Corporation ("DISH Network") on December 31, 2023. To complete the acquisition, a wholly owned subsidiary of EchoStar merged with and into DISH Network, with DISH Network surviving the merger as a wholly owned subsidiary of EchoStar. As previously announced, as a result of the merger, each share of DISH Network Class A Common Stock and DISH Network Class C Common Stock converted into 0.350877 shares of EchoStar Class A Common Stock, and each share of DISH Network Class B Common Stock converted into 0.350877 shares of EchoStar Class B Common Stock.

 

[MikeD-C05]

Now the layoffs start and they start having more power to get another loan to finish out their upcoming network before June of 2025. With every merger there comes layoffs because of duplicate positions no longer needed.

 

[Bruce]

Now the layoffs start and they start having more power to get another loan to finish out their upcoming network before June of 2025. With every merger there comes layoffs because of duplicate positions no longer needed.

First is to find someone to give them a loan, if it was that easy, Charlie Ergen would not have flown to Dubai looking for capital/loan/investors.

And a loan right now is not a good idea, with Dish’s debt load and not a real good business outlook, rates will be unbelievable.

Dish’s Charlie Ergen flew to Dubai to fundraise for satellite TV giant, source says

Dish has committed to build out a 5G wireless network that will serve 70% of the US by summer of 2023.

nypost.com

 

[nelson61]

Sucking the relatively fresh blood out of Echostar/Hughes.

Doubt if we will see any new Hughes Jupiter satellites since their objective is to divert the Hughes satellite internet cash flow to Dish Wireless.

 

[strikes2k]

Sucking the relatively fresh blood out of Echostar/Hughes.

Doubt if we will see any new Hughes Jupiter satellites since their objective is to divert the Hughes satellite internet cash flow to Dish Wireless.

I'm not an expert on that side of things. But they just launched one like 6 months ago. Do they need more in the foreseeable future?

Jupiter 3 Satellite Pushes SpaceX Rival Closer to Starlink Internet Speeds

HughesNet is now offering 100 Mbps speeds to its internet customers following the launch of its latest geostationary satellite.

gizmodo.com

 

[Radioguy41]

I see a lot of guessing, suppositions, and prognostications but very little, if any, facts just more of "The sky is falling." directed at Dish. Same old same old.

 

[Bruce]

Now the layoffs start and they start having more power to get another loan to finish out their upcoming network before June of 2025. With every merger there comes layoffs because of duplicate positions no longer needed.

As expected-

DISH Network is once again cutting jobs as the company moves to reduce operational costs and expenses throughout the business. Echo Star the new parent company of DISH and Sling TV has announced it will lay off 150 more staff. This comes as DISh has been restructuring the company since 2020. In total DISH has laid off around 3,000 employees in recent years. Just last November the company laid off 500 employees and now is laying off an additional 150 now that its merger with EchoStar has been completed.

DISH & Sling TV Are Laying Off 150 Employees Just After Laying Off 500 Staff | Cord Cutters News

DISH Network is once again cutting jobs as the company moves to reduce operational costs and expenses throughout the business. Echo Star the new parent company of DISH and Sling TV has announced it will lay off 150 more staff. This comes as DISh has been restructuring the company since 2020. In...

cordcuttersnews.com

 

[telstar_1]

As expected-

DISH Network is once again cutting jobs as the company moves to reduce operational costs and expenses throughout the business. Echo Star the new parent company of DISH and Sling TV has announced it will lay off 150 more staff. This comes as DISh has been restructuring the company since 2020. In total DISH has laid off around 3,000 employees in recent years. Just last November the company laid off 500 employees and now is laying off an additional 150 now that its merger with EchoStar has been completed.

DISH & Sling TV Are Laying Off 150 Employees Just After Laying Off 500 Staff | Cord Cutters News

DISH Network is once again cutting jobs as the company moves to reduce operational costs and expenses throughout the business. Echo Star the new parent company of DISH and Sling TV has announced it will lay off 150 more staff. This comes as DISh has been restructuring the company since 2020. In...

cordcuttersnews.com

Well, these obviously aren't disparate companies coming together with redundant people, as both were at the least previously controlled by Chas. W. Layoffs will likely continue, but not specifically due to this contractual arrangement. It's really just to prop up a now-floundering DiSH, which somewhat ironically had been spun off from Echostar over 20 years ago as a high-growth entity.

How long ago did they launch the Jupiter II?

 

[Bruce]

How long ago did they launch the Jupiter II?

View attachment 167789

Well, that launched on October 16, 1997.

 

[TheKrell]

Well, that launched on October 16, 1997.

There are more spinoffs of this series than I realized. I assumed telstar was referring to the original Lost in Space TV series which premiered in 1965.

 

[Bruce]

There are more spinoffs of this series than I realized. I assumed telstar was referring to the original Lost in Space TV series which premiered in 1965.

He was, which in the pilot said the Jupiter 2 launched in 1997.

As for the others, the movie sucked, but the Netflix series was good.

 

[Scott Greczkowski]

For those wondering, I am hearing much of the 150 laid off were duplicate positions between DISH and Echostar which are no longer needed due to them being murged together again.

 

[Bruce]

For those wondering, I am hearing much of the 150 laid off were duplicate positions between DISH and Echostar which are no longer needed due to them being murged together again.

Murged, isn’t that what happens when there was a transporter accident on Star Trek?

By the way, murge is in the urban dictionary, cannot post the definition or the link.

 

[meStevo]

I see a lot of guessing, suppositions, and prognostications but very little, if any, facts just more of "The sky is falling." directed at Dish. Same old same old.

lol, this didn't age well.

 

[nelson61]

Bloomberg :

Dish Network Corp. bonds plummeted Wednesday after the company announced a move to shuffle assets including valuable spectrum licenses into new subsidiaries, worrying holders of its more than $20 billion of debt.

The Englewood, Colorado-based company transferred a handful of wireless spectrum licenses into a new legal entity under EchoStar, according to a Wednesday statement. Dish also said it freed from debt covenants a new unit holding 3 million television subscribers, known in industry parlance as designating an unrestricted subsidiary.------

---“These kinds of maneuvers often result in what we call creditor-on-creditor violence, where new lenders appear and provide funds backed by the same assets that were just taken from the reach of existing debt holders,” said John Dixon, a managing director and bond trader at brokerage Dinosaur Financial Group.-----
---
Dish bonds dropped to 58.5 cents on the dollar.

He just sucked a large amount of collateral out of Dish and left those bondholders with fewer assets to chase if things go upside down.

 

[Bruce]

Bloomberg :

Dish Network Corp. bonds plummeted Wednesday after the company announced a move to shuffle assets including valuable spectrum licenses into new subsidiaries, worrying holders of its more than $20 billion of debt.

The Englewood, Colorado-based company transferred a handful of wireless spectrum licenses into a new legal entity under EchoStar, according to a Wednesday statement. Dish also said it freed from debt covenants a new unit holding 3 million television subscribers, known in industry parlance as designating an unrestricted subsidiary.------

---“These kinds of maneuvers often result in what we call creditor-on-creditor violence, where new lenders appear and provide funds backed by the same assets that were just taken from the reach of existing debt holders,” said John Dixon, a managing director and bond trader at brokerage Dinosaur Financial Group.-----
---
Dish bonds dropped to 58.5 cents on the dollar.

He just sucked a large amount of collateral out of Dish and left those bondholders with fewer assets to chase if things go upside down.

Here is the Yahoo Finance story-

The company’s debt, however, fell deeper into distressed territory after the announcement. Its 7.75% notes due 2026 dropped as much as 11.25 cents on the dollar to 58.5 cents, according to pricing source Trace.

Dish Bonds Plummet on EchoStar Spectrum Transfer Maneuver

(Bloomberg) -- Dish Network Corp. bonds plummeted Wednesday after the company announced a move to shuffle assets including valuable spectrum licenses into new subsidiaries, worrying holders of its more than $20 billion of debt. Most Read from BloombergAmazon’s Twitch to Cut 500 Employees, About...

finance.yahoo.com

 

[nelson61]

Their presser.

ECHOSTAR CORPORATION UNLOCKS INCREMENTAL STRATEGIC, FINANCIAL AND OPERATING FLEXIBILITY FOLLOWING COMPLETION OF MERGER WITH DISH NETWORK CORPORATION

EchoStar Corporation (Nasdaq: SATS) ("EchoStar" or the "Company") announced today the completion of a series of strategic transactions to further unlock incremental strategic, financial and...

about.dish.com

 

[That American Girl]

Now the layoffs start and they start having more power to get another loan to finish out their upcoming network before June of 2025. With every merger there comes layoffs because of duplicate positions no longer needed.

Yeah, that's what I'm worried about....

 

[MikeD-C05]

For those wondering, I am hearing much of the 150 laid off were duplicate positions between DISH and Echostar which are no longer needed due to them being murged together again.

There's the duplicate positions I was talking about when there is a merger. Always have layoffs when that happens.

 

[telstar_1]

There's the duplicate positions I was talking about when there is a merger. Always have layoffs when that happens.

Well, that seems a rather small number. Probably affects required governance positions of both now needing to cover just 1 entity.

I guess 1997 was considered a futuristic year. Both the Jupiter II launch and the commissioning of HAL happened then. In A.C.Clarke's book 2001, Hal came to life on January 12, 1997 in Urbana, IL. In the movie the year is 1992.