Shares of EchoStar, following its merger with Dish Network, saw a significant increase after the telecommunications company announced that it has enlisted the help of advisors to assess potential strategic options. The stock surged by 34% to $16.96 during morning trading, bringing its total gains to approximately 3% over the past year.
To facilitate this process, EchoStar has secured the services of investment bank Houlihan Lokey and law firm White & Case. With Charlie Ergen at the helm as Chairman, EchoStar’s recent merger with Dish Network has consolidated pay-TV assets alongside Dish’s rapidly developing wireless network and EchoStar’s satellite operations.
Moreover, the merger has provided the combined company with greater financial resources to support the expansion of Dish’s 5G network. In addition, EchoStar announced that Dish had transferred some of its unencumbered wireless spectrum licenses to a newly established subsidiary named EchoStar Wireless Holding. Other asset reallocations have also taken place.
Hamid Akhavan, the Chief Executive of EchoStar, emphasized that these strategic moves would enable the company to optimize its resources and work towards its goal of becoming the leading provider of terrestrial mobile, satellite connectivity, and content services.
