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- 1 EchoStar Corporation will reportedly sign a merger deal with Dish Network.
- 2 The combined value of both companies would be equivalent to $6 Billion.
- 3 Since the merger was announced, SATS stock has been in an uptrend.
American satellite communication facilities provider company EchoStar Corporation (NASDAQ: SATS) is reported to see a merger deal with Dish Network (NASDAQ: DISH). Though the deal was in the mainstream conversations, it is likely to take place by Tuesday, August 8th, 2023. Following the update, SATS stock price marked an insane jump of over 25% prior to its earnings.
Wall Street Journal reported citing people with knowledge on the matter that the chairperson of both the companies, Charlie Ergen is moving ahead with the deal to merge Dish Network and EchoStar. There is not much information about the deal but the existing EchoStar CEO, Hamid Akhavan, is said to be designated as president and executive of the company emerging after the merger.
The combined value of both companies would be equivalent to $6 Billion: Dish Network has a market cap of $4 Billion while EchoStar has nearly $2 Billion.
It is important to note that the pay-TV business company and satellite communications infrastructure firm are already in a connection. EchoStar was founded as a satellite-television equipment distributor in 1980.
In 2008, it rebranded as Dish Network and its technology arm spun off as EchoStar Corporation. Ergen, who co-founded EchoStar, had control of both companies.
Dish caters to millions of pay-TV and mobile users in the United States, operating under renowned brands like Sling TV and Boost Mobile. The company has strategically acquired a valuable collection of spectrum licenses to bolster its wireless ventures.
Meanwhile, EchoStar manages an array of satellites that cater to various needs, including providing home-internet services to HughesNet users, as well as serving corporate and government customers.
SATS Stock Price Movement
Currently, SATS stock price is trading at $23.5 after marking a rise of over 20% in the last intraday trading session on Monday, August 7th, 2023. This was following the up-move streak and it rose 25% in less than a week.
Prior to making the recent sudden up move, SATS stock was consolidating for about a month. It is sustaining immediate support at $19.
The 50 and 200-day exponential moving averages (EMA) saw a golden crossover recently, suggesting bullish sentiment around the stock price. Since the stock rose in the wake of the company’s anticipated merger, it is likely to play a crucial factor to keep the price up.
However, EchoStar will be posting the quarterly earnings on August 8th, 2023 and it could impact SATS stock price. Depending upon the results in the days ahead, the stock price movement could decide the course further.
Disclaimer
The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
