Charlie Ergen Steps Down as Dish CEO to Focus on Wireless Business
December 05 2017 - 12:40PM
Dow Jones News
By Drew FitzGerald and Imani Moise
Dish Network Corp. said Tuesday that Charlie Ergen has stepped
down from his role as chief executive to focus on the company's
fledgling wireless business.
The company promoted its operating chief, Erik Carlson, to the
CEO post and named other executives to manage divisions holding its
traditional satellite-television business and Sling TV, its
online-only pay-TV package.
The reorganization comes as Dish's satellite business bleeds
customers, pressuring its earnings. Investors have meanwhile waited
for years for the company to find a profitable use for its trove of
wireless-spectrum licenses. The Englewood, Colo., company has spent
more than $21 billion over the past decade to assemble airwaves it
could use for its own wireless network or to sell to another
carrier.
Mr. Ergen, who will remain chairman of the company, previously
sought deals with major telecommunications businesses to pair their
networks with its spectrum but hasn't found success. Earlier this
year, he said it could be a good time to strike a deal, in light of
what he called a "more friendly" administration when it came to
mergers and acquisitions.
That outlook was complicated by months of negotiations between
wireless companies Sprint Corp. and T-Mobile US Inc., talks that
came to an end last month after both sides came to an impasse over
ownership terms. The telecom industry got another shock a few weeks
later, when the U.S. Justice Department sued to block AT&T
Inc.'s $85 billion purchase of Time Warner Inc., arguing the
combined company would have too much power over video distribution
and innovation.
The department's lawsuit, which AT&T and Time Warner have
vowed to fight, tweaked some assumptions about which potential
combinations might raise government officials' concerns. Some
analysts said the department's arguments, which lump satellite
service in with other video-distribution methods, could make it
easier for AT&T to buy Dish's satellite-TV unit.
On the wireless side, Dish could still dig in for the long haul.
Executives have been laying the groundwork for an "internet of
things" network that could serve internet-capable cars, home
devices and other gadgets, but say it would take years to build.
The company will need to run a wireless business covering a
significant amount of the U.S. by 2020 to meet federal obligations,
or it could lose the spectrum licenses.
This is the second time Mr. Ergen has stepped down as CEO at the
company he co-founded in 1980. He left the CEO post in 2011 then
reclaimed the position in 2015.
During his most recent stint as CEO, Mr. Ergen launched Sling
TV, the first online live TV service aimed at cord cutters created
by a traditional pay-TV provider.
AT&T said Tuesday its DirecTV Now service has more than 1
million subscribers after a little more than a year. Sling TV
doesn't disclose how many paying customers it has, though several
analysts estimate the service has well over 1 million.
Dish Network shares rose 1.1% to $52.18 during early trading.
The stock is down nearly 10% so far this year.
Write to Drew FitzGerald at andrew.fitzgerald@wsj.com and Imani
Moise at imani.moise@wsj.com
(END) Dow Jones Newswires
December 05, 2017 12:25 ET (17:25 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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