Dish to Buy EchoStar as Ergen’s TV Empire Shifts to Wireless (3)

Dish Network Corp. is proposing to buy EchoStar Corp., the satellite network operator it once owned, in an all-stock deal valued at about $4 billion as billionaire Charlie Ergen works to turn his struggling legacy pay-TV business into a wireless communications company.

Every share of EchoStar will be converted into 2.85 shares of Dish, representing a premium of 12.9% for EchoStar stockholders, according to a company statement issued Tuesday. Existing Dish investors will own about 69% of the merged company. Dish shares surged as much as 9% while EchoStar fell 2%.

The merger reunites EchoStar with its former parent, ...