EchoStar

Last updated

EchoStar Corporation
Company type Public
Industry Telecommunications
Satellite television
FoundedJanuary 1, 2008;16 years ago (2008-01-01)
Headquarters Englewood, Colorado, U.S.
Key people
Products Direct-broadcast satellite, pay television, pay-per-view, over-the-top media services, Mobile telephony, Wireless broadband
RevenueIncrease2.svg US$1.99 billion (2021)
Increase2.svgUS$217 million (2021)
Increase2.svgUS$62.7 million (2021)
Total assets Decrease2.svgUS$6.05 billion (2021)
Total equity Decrease2.svgUS$3.41 billion (2021)
Number of employees
c. 2,500 (2021)
Subsidiaries
Website echostar.com
Footnotes /references
[1]

EchoStar Corporation is an American company providing satellite communication, Wireless telecommunications, and Internet services. Its Hughes Network Systems and EchoStar Satellite Services business are operated from its headquarters in Arapahoe County, Colorado. The company also provides television services under the Dish and Sling brands as well as mobile services under the Boost Mobile brand.

Contents

The company in its current form was founded in 2008 after the original EchoStar spun off its non-consumer assets while the original company was renamed to Dish Network Corporation. In an industry reverse, EchoStar proposed to buy Dish in 2023 with the acquisition being completed by the end of that year, as a result, Dish was absorbed into EchoStar as a whole. [2]

EchoStar made its debut on the Fortune 500 list in 2024, ranking #242. [3]

History

EchoStar was originally formed in 1980 by its chairman Charles Ergen as a distributor of C band TV systems. In 1987, it applied for a direct broadcast satellite (DBS) license with the Federal Communications Commission and was granted access to orbital slot 119° west longitude in 1992.

On December 28, 1995, the firm successfully launched its first satellite, EchoStar I. [4] On March 4, 1996, it established the Dish Network brand name to market its home satellite TV system. [5]

On January 2, 2008, the Dish Network business was spun-off from the technology and infrastructure side of the business. A split in the shares created two companies; the former EchoStar Communications Corporation changed its name to Dish Network Corporation [6] which consisted mainly of the Dish Network business, and EchoStar Corporation, which retained ownership of the technology side including the satellites, Sling Media, and the set-top box development arm. Dish Network completed its distribution to EchoStar of its digital set-top box business, certain infrastructure, and other assets and related liabilities, including certain of their satellites, uplink and satellite transmission assets, and real estate. Following the spin-off, EchoStar and Dish Network operated as separate publicly traded companies, until they were reunited in 2023. [7]

On February 14, 2011, EchoStar announced that it would acquire Hughes Communications in a deal valued at US$1.3 billion. [8]

On January 31, 2017, EchoStar announced that it had reached an agreement with DISH to transfer the EchoStar Technologies businesses, which designed, developed and distributed digital set-top boxes, provided satellite uplinking and broadcast services and developed and supported streaming video technology back to DISH. [9] The transaction was completed on January 31, 2017, [10] substantially returning DISH to its pre-2008 status as a set-top-box hardware manufacturer.

In March 2017, after two delays caused by weather worries, SpaceX delivered EchoStar XXIII into orbit. The satellite was launched on a Falcon 9 Rocket and provides broadcast services for Brazil. [11] Because EchoStar XXIII is a heavy satellite, this mission did not include a rocket landing post-takeoff, as it would require too much fuel. This was the first time a purely commercial satellite was launched from a pad that once served as the base for Apollo moon trips and space shuttle flights. [12] [13]

On May 20, 2019, EchoStar announced that it had reached an agreement with Dish Network Corporation to transfer the portion of the business which managed and provided broadcast satellite services, referred to as the BSS (Broadcast Satellite Services) business, to Dish in order to concentrate on broadband services and other initiatives. [9] The transaction was completed on September 10, 2019. [14]

On August 8, 2023, The Hollywood Reporter reported that Ergen was proposing a remerger between Dish and EchoStar. [15] Later that day, the acquisition was formally announced by both companies. [16] On January 2, 2024, it was announced that the transaction had been completed on December 31, 2023. [17] [18]

In May 2024, EchoStar announced that it has been awarded a U.S. Navy wireless and telecommunications contract to provide 5G smart devices and services for the Department of Defense and federal agencies. [19]

In May 2024, Dish Network and Hughes Network Systems, both Echostar companies announced a new bundled service of Dish satellite TV with Hughesnet satellite internet. [20]

On September 30, 2024, EchoStar announced that it would divest its video distribution unit, Dish Network, to DirecTV in a debt exchange transaction that includes a payment of $1 and the assumption of approximately $9.8 billion in debt. [21] The deal also included $2.5 billion of financing from TPG Angelo Gordon and other co-investors to allow EchoStar to refinance the company's November 2024 debt maturity. [22] The deal will allow EchoStar to reduce its debt and refocus its resources toward its wireless Boost Mobile and satellite connectivity businesses. EchoStar and DirecTV expect the deal to close in the fourth quarter of 2025, contingent on regulatory approval and bondholders writing off nearly $1.6 billion in Dish-related debt. [23] In November, DirecTV abandoned the deal due to opposition from its bondholders. [24]

Satellite fleet

Orbital locations may change

Since EchoStar frequently moves satellites among its many orbiting slots this list is not necessarily up-to-date.

EchoStar satellites
SatelliteLocationLaunch dateLauncherSatellite busStatus
EchoStar I December 28, 1995 Long March 2E/EPKMDecommissioned
EchoStar II September 11, 1996 Ariane 42P H10-3 Decommissioned
EchoStar III (DBSC 1)October 05, 1997 Atlas IIAS Decommissioned
EchoStar IV May 07, 1998 Proton-K/DM-03 Decommissioned
EchoStar V September 23, 1999 Atlas IIAS Decommissioned
EchoStar VI July 14, 2000 Atlas IIAS Decommissioned
EchoStar VII February 21, 2002 Atlas IIIB-DEC Decommissioned
EchoStar VIII August 22, 2002 Proton-K/DM-03 Decommissioned
EchoStar IX (Galaxy 23)121° WAugust 8, 2003 Zenit-3SL FS-1300 In Service
EchoStar X 110° WFebruary 15, 2006 Zenit-3SL A2100AXS In Service
EchoStar XI July 16, 2008 Zenit-3SL In Service
EchoStar XII (Rainbow 1)July 17, 2003 Atlas V521In Service
EchoStar XIII (CMBstar 1)- Proton-M/Briz-M Cancelled
EchoStar XIV March 20, 2010 Proton-M/Briz-M In Service
EchoStar XV 61.5° WJuly 10, 2010 Proton-M/Briz-M LS-1300 In Service
EchoStar XVI 61.5° WNovember 20, 2012 Proton-M/Briz-M LS-1300 In Service
EchoStar XVII (Jupiter 1)107.0° WJuly 5, 2012 Ariane 5 LS-1300 In Service
EchoStar XVIII June 18, 2016 Ariane 5ECA In Service
EchoStar XIX (Jupiter 2)97.1° WDecember 18, 2016 Atlas V431 SSL 1300 In Service
EchoStar XXIII 109.9° WMarch 16, 2017 Falcon 9 SSL 1300 In Service
EchoStar XXIV (Jupiter 3)105.2° WJuly 29, 2023 Falcon Heavy SSL 1300 In Service
EchoStar XXV TBATBAPlanned
EchoStar 105 (SES-11)105.0° WOctober 11, 2017 Falcon 9 Eurostar E3000 In Service

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References

  1. ↑ "EchoStar Corporation 2021 Annual Report (Form 10-K)". U.S. Securities and Exchange Commission. February 24, 2022. Archived from the original on January 2, 2024.
  2. ↑ Moritz, Scott (August 8, 2023). "Dish to Buy EchoStar as Ergen's TV Empire Shifts to Wireless" . Bloomberg News . Archived from the original on January 2, 2024. Retrieved December 16, 2023.
  3. ↑ "EchoStar". Fortune. Retrieved June 9, 2024.
  4. ↑ Ford, Dominic. "ECHOSTAR 1". in-the-sky.org. Archived from the original on October 11, 2023. Retrieved March 4, 2019.
  5. ↑ Hogan, Monica (March 18, 2006). "EchoStar Toasts a Decade of Dish Network". Multichannel News. Archived from the original on October 16, 2023. Retrieved March 4, 2019.
  6. ↑ "SEC Filing". ir.dish.com. Archived from the original on October 11, 2023. Retrieved October 31, 2019.
  7. ↑ Savitz, Eric. "EchoStar Completes Spinoff; Worth More In Parts?" . www.barrons.com. Dow Jones & Company. Archived from the original on October 11, 2023. Retrieved March 4, 2019.
  8. ↑ de la Merced, Michael J. (February 14, 2011). "EchoStar in $1.3 Billion Deal for Hughes Communications". The New York Times . Archived from the original on January 2, 2024.
  9. 1 2 "EchoStar Announces Agreement to Transfer BSS Business to DISH" (Press release). EchoStar Corporation. May 20, 2019. Archived from the original on October 16, 2023. Retrieved October 31, 2019.
  10. ↑ "EchoStar Announces Exchange Agreement for Tracking Stock" (Press release). EchoStar Corporation. January 31, 2017. Archived from the original on October 16, 2023. Retrieved October 31, 2019.
  11. ↑ Foust, Jeff (March 16, 2017). "SpaceX launches EchoStar 23". SpaceNews . Archived from the original on January 2, 2024. Retrieved March 4, 2019.
  12. ↑ Grush, Loren (March 13, 2017). "SpaceX successfully launched a communications satellite on its Falcon 9 rocket". The Verge . Archived from the original on October 5, 2022. Retrieved August 7, 2017.
  13. ↑ Boyle, Alan (March 16, 2017). "After delay, SpaceX launches EchoStar satellite – but forgoes rocket landing". GeekWire. Archived from the original on March 16, 2017. Retrieved August 7, 2017.
  14. ↑ "EchoStar Announces Completion of the Spin-Off and Merger of its BSS Business" (Press release). EchoStar Corporation. September 10, 2019. Archived from the original on October 1, 2023. Retrieved October 31, 2019.
  15. ↑ Wprin, Alex; Szalai, George. "Charlie Ergen Wants to Reunite His Telecom Empire Via All-Stock Merger of Dish Network and EchoStar". The Hollywood Reporter . Archived from the original on August 17, 2023.
  16. ↑ "DISH Network Corporation and EchoStar Corporation to Combine" (Press release). Dish Network. August 8, 2023. Archived from the original on January 2, 2024.
  17. ↑ Davis, Wes (January 2, 2024). "Dish Network rejoins EchoStar as it tries to compete in 5G". The Verge. Retrieved February 22, 2024.
  18. ↑ Alleven, Monica (January 2, 2024). "Dish-EchoStar merger closes". Fierce Wireless. Retrieved February 23, 2024.
  19. ↑ Corporation, EchoStar. "EchoStar Awarded a U.S. Navy Wireless and Telecommunications Contract to Provide 5G Smart Devices and Services for the DoD and Federal Agencies". www.prnewswire.com. Retrieved May 16, 2024.
  20. ↑ Corporation, EchoStar. "DISH TV and Hughes Debut First Bundled Service Offering to Enhance Connectivity and Entertainment Across Rural America". www.prnewswire.com. Retrieved May 28, 2024.
  21. ↑ Reilly, Jordan Valinsky, Ramishah Maruf, Liam (September 30, 2024). "DirecTV agrees to buy Dish for $1 | CNN Business". CNN.{{cite web}}: CS1 maint: multiple names: authors list (link)
  22. ↑ Corporation, EchoStar. "EchoStar Announces Suite of Transformative Transactions to Delever Its Balance Sheet and Improve Its Debt Maturity Profile, Transition Its Strategic Focus and Pave the Road for it to Enhance and Further Deploy its Nationwide 5G Open RAN Wireless Network". www.prnewswire.com. Retrieved September 30, 2024.
  23. ↑ Chapman, Michelle; Grantham-Philips, Wyatte (September 30, 2024). "Satellite service DirecTV buys rival Dish as it fights the onslaught of streaming services". ABC News. Retrieved September 30, 2024.
  24. ↑ Szalai, Georg; Werpin, Alex (November 21, 2024). "DirecTV Abandons Deal to Acquire Dish Amid Bondholder Opposition". The Hollywood Reporter . Archived from the original on November 22, 2024. Retrieved November 21, 2024.
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