Major Shareholder of Satellite Communications Firm Confirms Control Through Family Trust with Large Internal Share Transfer

Satellite communications company EchoStar Corp. (NASDAQ: SATS) disclosed that on May 13, Chairman Charlie Ergen—its largest shareholder—along with related entities and family trusts, internally transferred millions of shares of its Class B common stock among affiliates, including a Grantor Retained Annuity Trust (GRAT) and Telluray Holdings, without any cash changing hands. Although this transaction restructured the Class A–equivalent stake held by Telluray Holdings and other affiliates, the Ergen family’s economic stake and voting control in EchoStar remain effectively unchanged.

Meanwhile, EchoStar has cleared a key regulatory hurdle by obtaining approval from the U.S. Federal Communications Commission for its approximately $40 billion (about KRW 54 trillion) sale of spectrum licenses to AT&T and SpaceX. Consequently, market interest in monetizing its spectrum assets and reshaping its business portfolio is growing. In line with this, EchoStar’s stock has climbed roughly 10% over the past five trading days, boosting its market capitalization to about $39 billion (around KRW 50 trillion).

EchoStar provides satellite-based broadband and satellite communications services in the U.S. and global markets. Following its restructuring with Dish Network, the company now spans both pay-TV and wireless network operations. According to a recent amended Schedule 13D filing, Charlie and Cantey Ergen together hold just over a 50% economic interest and about 90% of the voting power across Class A and B shares. The internal transfers are therefore seen as measures to preserve their strong governance over EchoStar.