Dish Network, EchoStar nearing deal to merge – report (NASDAQ:DISH)

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Charlie Ergen is nearing a deal to merge Dish Network (NASDAQ:DISH) and EchoStar (NASDAQ:SATS).

An announcement on a deal may come as soon as Tuesday, according to a WSJ report late Monday. Exact terms of the transaction couldn’t be learned, though the price for EchoStar (SATS) may be lower than where EchoStar closed on Monday after jumping 21% ahead of its Q2 results on Tuesday.

The price is still expected to be a premium to the $17 where the stock traded in recent weeks, according to the WSJ report. EchoStar (SATS) traded around $17 on July 5, the day before a Semafor report that Ergen was looking to merge his two companies.

A combination of DISH Network (DISH) and EchoStar (SATS) could help stave off the decline in the satellite TV business, with EchoStar seen as a stronger financial entity, Semafor reported a month ago. EchoStar has a market cap of about $2 billion, while DISH is valued at around $4.1 billion.

On Monday, investment firm Raymond James upgraded EchoStar, citing its position at a “critical juncture” in the industry.