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The founder’s Dish and Sling TV company Echostar reported a total pay TV sub gain of just over 7 million, but its major pacts are now with Elon Musk.
By Georg Szalai
Global Business Editor
Charlie Ergen’s EchoStar reported a slight net Pay TV subscriber gain in the third quarter, along with another big spectrum deal and management tweaks.
In the third quarter, it added 159,000 Sling TV subscribers to hit 1.995 million, but lost 152,000 Dish TV subs to hit 5.171 million, down from 5.323 million as of June, for a total sub count of 7.166 million.
It also unveiled an amended definitive agreement with SpaceX to sell the company’s unpaired AWS-3 licenses for approximately $2.6 billion in SpaceX stock, a transaction that builds on a deal that the companies entered in September.
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EchoStar has been led by Hamid Akhavan and CEO and president, with Ergen serving as EchoStar’s executive chairman, but that changed on Thursday.
“This transaction with SpaceX, in addition to our previously announced spectrum transactions and commercial agreements, will strengthen EchoStar’s ability to develop new business opportunities and growth in value for our shareholders,” said Akhavan. “The combination of AWS-3 uplink, AWS-4 and H-block spectrum from EchoStar with the rocket launch and satellite manufacturing capabilities from SpaceX accelerates the realization of powerful and economical direct-to-cell service offerings for consumers and enterprises worldwide, including our Boost Mobile customers.”
Closing of the proposed transaction will occur after all required regulatory approvals are received and other closing conditions are satisfied.
The company on Thursday also announced a new business called EchoStar Capital that will be responsible for investing new capital from the recent spectrum transactions “to fuel future growth opportunities for EchoStar.” Akhavan will serve as CEO, while Ergen will take back the roles as president and CEO of EchoStar Corp. and “assume the operating responsibility” for the pay-TV and wireless business units.
“EchoStar will soon be in the unique position of having substantial available capital, vastly changing its scope of opportunities. Through EchoStar Capital we will fuel EchoStar’s growth into new and complementary arenas, beyond its successful pay-TV, wireless and enterprise business units,” concluded Akhavan.
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