Charlie Ergen

Not to be confused with Charlie Engen.
Charlie Ergen
Born
Charles William Ergen

(1953-03-01) March 1, 1953 (age 71)
Oak Ridge, Tennessee, US
Alma materOak Ridge High School
University of Tennessee (BA)
Wake Forest University (MBA)
OccupationBusinessman
Known forCo-founder, Dish Network
TitleChairman of Dish Network and EchoStar Corporation[1]
Term1998-
SpouseCandy Ergen
Children5

Charles William Ergen (born March 1, 1953) is an American businessman and the is co-founder and chairman of Dish Network and EchoStar. He served as CEO of Dish Network until May 2011, when he stepped down and was succeeded by Joseph Clayton. Ergen resumed the role in March 2015 after Clayton's retirement, serving until December 2017, when Erik Carlson, then president and COO, was promoted to CEO.[1] Ergen remains chairman of the company.[2] Ergen owns 48 percent of Dish[3]: 6  and 46 percent of Echostar shares,[3]: 8  which gives him 78 percentage of Dish's[3]: 6  and 72 percent of EchoStar's[3]: 8  total voting power.

Early career

After graduating with an M.B.A. from Wake Forest in 1976, Ergen worked as a financial analyst for Frito-Lay. He "retired" in 1978 in hopes of working for himself.[4][5] Afterward, he was a professional gambler, playing poker and blackjack.[4][6]

EchoStar

Main article: EchoStar

In 1980 Ergen, his future wife Candy, and Jim DeFranco started a new business called EchoSphere Corporation, investing $60,000[7] to purchase two C-Band antennas, targeting rural Colorado. They drove around the Denver metro area on a small budget, selling satellite dishes from the back of their truck.[8]

In 1990 Ergen elevated EchoStar's profile by raising $335 million in junk bonds and purchasing orbital slots for satellites. Two years later, EchoStar got a DBS license from the Federal Communications Commission, giving the company its own geostationary orbital slot. In 1993, EchoStar Communications was incorporated. Under Ergen, EchoStar's net income doubled to $20.4 million, in 1993.[8]

Dish

Main article: Dish Network

Under Ergen, Dish was the first satellite television provider to offer two-way high-speed internet access as an investor in and dealer for StarBand Communications' geostationary Ku-band satellite internet access service in the United States and the first to introduce a Digital video recorder in a set-top box. He was also instrumental in making satellite receivers available for under $200. In 2012, the Big Four Broadcasters, NBC, CBS, ABC and Fox filed a suit against Dish after it launched AutoHop, a technology that records broadcasting programming and plays it back without commercials. Dish filed a suit seeking a declaratory judgment asserting the legality of the judgment. Preliminary injunction by Fox to block the service was denied. Ergen has stated that Dish's present focus is on acquiring a significant share of the spectrum for cellular wireless services. Dish is also looking for a partner to build a wireless network, with Google and AT&T speculated to be potential partners.[9][10][11]

Under Ergen, EchoStar and Dish Network acquired multiple companies, after an $8 million deal for 22 channel assignments of DBSC.[12][13]

Litigation

Various lawsuits in which Ergen has been involved include:

  • In 2013 and 2014, Harbinger Capital Partners, a hedge fund managed by Philip Falcone, sued Dish Network and Charles Ergen personally in federal court in New York City, alleging racketeering and claiming that Dish Network had illegally tried to take away the hedge fund's control over LightSquared Inc. during its bankruptcy. In 2015, the federal court dismissed the suit.[14][15]
  • The Iron Workers Mid-South Pension Fund filed suit against Ergen in federal court in Colorado in September 2013. Ergen bought large amounts of LightSquared's debt at deep discounts while it was in bankruptcy. Ergen then made a personal bid of $2 billion to acquire LightSquared's assets. This increased the price that Dish had to bid in order to acquire LightSquared's rights to wireless spectrum. Indeed, Ergen ordered Dish to bid $2.2 billion on these assets. The suit claims this was a breach of Ergen's fiduciary duties to Dish shareholders.[16] Dish and Ergen prevailed in the litigation.
  • In 2005, a discrimination lawsuit was filed against EchoStar in federal court in Denver by an employee who said that EchoStar had engaged in "hostile conduct" against her after she had a baby in 2001.[17] The lawsuit was settled for an undisclosed amount in August 2005.[18]

Personal life

Ergen was born into an Episcopalian family[19] in Oak Ridge, Tennessee, on March 1, 1953,[20] the fourth of five children born to Viola (née Siebenthal) and William Krasny Ergen.[21][22] His mother was one of the first female accountants in the state of Minnesota.[19] His father was an Austrian immigrant who was working in Sweden as a nuclear physicist, and left Europe prior to World War II.[21] His father coined the phrase "China syndrome".[21]: 83  His parents married in Minnesota in 1944 and then moved to Camden, New Jersey, before settling in Oak Ridge where his father accepted a position at the Oak Ridge National Laboratory.[19] Ergen graduated from Oak Ridge High School. He then received a Bachelor of Arts from the University of Tennessee at Knoxville, where he was a member of Phi Gamma Delta fraternity,[23] and an M.B.A. from Wake Forest University.[24] He was a professional blackjack and poker player.[23][25]

Ergen is well known for his frugality. His office is furnished with second-hand couches and he does not fly first class.[26] Ergen used to sign all the checks his company issued but currently signs only checks for $100,000 or more.[23] Ergen's supporters call his negotiating style patient and prudent.[27]

He is married to Cantey ("Candy") McAdam. They have five children.[28] They live in The Village at Castle Pines, Colorado.[20]

Wealth

Ergen first appeared in the Forbes 400 list in 1999 at the age of 46, with a net worth of US$4.8 billion and was ranked 36th in the list,[29] as Dish share price rose more than 702.1% from 1 January 1999 to 31 December 1999.[30] He was also the third richest person in Colorado at that time. In 2000, Ergen first appeared in The World's Billionaires by Forbes and having a net worth of $11.2 billion, making him the 21st richest person in the world.[31]

Net worth and ranking of Charles Ergen from 2000 to 2023 according to The World's Billionaires.
Year Net Worth Rank
2000 [32] $11.2 billion #21
2001 [33] Decrease $8.8 billion Decrease #35
2002 [34] Decrease $6.2 billion Decrease #42
2003 [35] Decrease $5.9 billion Decrease #45
2004 [36] Increase $9.1 billion Increase #34
2005 [37] Decrease $7.2 billion Decrease #55
2006 [38] Decrease $6.7 billion Decrease #80
2007 [39] Increase $10 billion Increase #62
2008 [40] Decrease $9.5 billion Decrease #87
2009 [41] Decrease $3.9 billion Decrease #146
2010 [42] Increase $5.2 billion Decrease #148
2011 [43] Increase $7 billion Increase #136
2012 [44] Increase $8.3 billion Increase #106
2013 [45] Increase $10.6 billion Increase #100
2014 [46] Increase $15 billion Increase #65
2015 [47] Increase $20.1 billion Increase #43
2016 [48] Decrease $12.2 billion Decrease #77
2017 [49] Increase $18.3 billion Increase #47
2018 [50] Decrease $13.4 billion Decrease #106
2019 [51] Decrease $9.6 billion Decrease #143
2020 [52] Decrease $5.4 billion Decrease #304
2021 [53] Increase $9.6 billion Increase #241
2022 [54] Decrease $8.7 billion Steady #241
2023 [55] Decrease $3.2 billion Decrease #905

Ergen appeared on the Forbes 400 list every year from 1999 until 2022, but he was dropped in 2023.[55] On November 6, 2023, Dish Network's and EchoStar share price plunged 37.43%[56] and 31.28%[57] respectively after both companies reported earnings below analysts' expectations and a decline in subscriber numbers.[58] As a result, Ergen lost $786 million in a day, causing his net worth to drop from $1.6 billion to $857.6 million, marking the first time in nearly 25 years that he lost his billionaire status.[55] However, as of November 2024, Forbes estimates his net worth at $2.5 billion.[59]

Recognition

Ergen was recognized with a Rocky Mountain News' Business Person of the Year Award in 1996, and honoured a second time in 2001.[60][61]

Ergen co-founded the Satellite Broadcasting and Communications Association.[60][61] In 2012, Ergen was inducted into the Consumer Electronics Hall of Fame.[62]

References

  1. ^ a b "Dish co-founder Ergen steps down from CEO role to focus on wireless". Reuters. 5 December 2017.
  2. ^ "Dish co-founder Ergen steps down from CEO role to focus on wireless". Reuters. December 5, 2017. Retrieved March 10, 2020.
  3. ^ a b c d "Schedule 14A". SEC. 20 March 2018. Retrieved 29 May 2018.
  4. ^ a b Keating, Stephen (1999). Cutthroat: High Stakes & Killer Moves on the Electronic Frontier. Boulder, Colorado: Johnson Books. pp. 84–85. ISBN 9781555662486.
  5. ^ Gardner, Eriq (2 April 2013). "Dish Network's Charlie Ergen Is the Most Hated Man in Hollywood". The Hollywood Reporter. Retrieved 22 September 2020.
  6. ^ Ramachandran, Shalini (June 4, 2015). "Dish's Finicky CEO Is Wild Card in T-Mobile Talks". The Wall Street Journal. Retrieved June 15, 2020.
  7. ^ Roberts, Michael (21 March 2017). "Meet Colorado's Ten Billionaires". westword.com. Retrieved 19 September 2018.
  8. ^ a b "Chairman and chief executive officer, EchoStar Communications Corporation" (Press release).
  9. ^ "Dish Network CEO Charlie Ergen, the TV Disrupter". Advertising Age. 4 December 2012.
  10. ^ "Federal Court Won't Block Dish's 'AutoHop'" (Press release). MultiChannel.
  11. ^ "Dish's AutoHop scores another legal win". Los Angeles Times.
  12. ^ "EchoStar to Acquire Hughes for About $1.32 Billion" (Press release). Bloomberg. 14 February 2011.
  13. ^ "DISH Network's Intriguing 2011 Acquisitions" (Press release). 4 December 2012.
  14. ^ Stempel, Jonathan (21 July 2015). "Harbinger sues Dish, Ergen over LightSquared, seeks $1.5 billion". Reuters.
  15. ^ "Dish, Ergen Escape Harbinger's $1.5B Suit Over LightSquared - Law360". www.law360.com.
  16. ^ "Shareholders Sue Dish, Charlie Ergen Over $2.2 Billion Spectrum Bid". The Hollywood Reporter. 26 September 2013. Retrieved 19 September 2018.
  17. ^ "Female EchoStar Executives Charge Ergen with 'Abusive Behavior'". Denver Post. United States. 6 April 2005.
  18. ^ "EchoStar worker suit alleges sex misconduct". denverpost.com. 2006-06-12. Retrieved 2016-03-28.
  19. ^ a b c "Oral History of Viola Ergen, Interviewed by Keith McDaniel". Center for Oak Ridge Oral History (Interview). 18 July 2011. "We joined the Saint Stephen's Episcopal Church in '48 when we came here."
  20. ^ a b "BusinessWeek resume". Businessweek. Archived from the original on December 21, 2013.
  21. ^ a b c Keating, Stephen (1999). Cutthroat: High Stakes & Killer Moves on the Electronic Frontier. Big Earth Publishing. ISBN 9781555662486.
  22. ^ Weatherford Mortuary: "Viola Siebenthal Ergen" Archived 2015-09-25 at the Wayback Machine May 21, 2013
  23. ^ a b c "Dish Network, the Meanest Company in America". Yahoo.com. 2 January 2013.
  24. ^ "Dish Network Board of Directors" (Press release). Dish Network.
  25. ^ Shea, Dann (19 October 2008). "Charles Ergen: Meet America's Richest Media Mogul You've Never Heard Of". HuffPost Canada.
  26. ^ Iwatani, Yukari (30 October 2001). "Former gambler Ergen wins a big round: A career defying the odds". National Post. Canada.
  27. ^ Ramachandran, Shalini (4 June 2015). "Dish's Finicky CEO Is Wild Card in T-Mobile Talks". Wall Street Journal. Retrieved 19 September 2018 – via www.wsj.com.
  28. ^ "The World's Billionaires 2018". Forbes.com. Retrieved 29 November 2019.
  29. ^ "Twelve Coloradans made the Forbes list of 400 richest Americans on Thursday. Here these Coloradans are listed by rank, name, age, hometown, net worth in dollars and source of wealth". denverpost.com. 24 September 1999. Retrieved 7 November 2023.
  30. ^ "The closing price for DISH Network (DISH) in 1999 was $34.74, on December 31, 1999. It was up 702.1% for the year. The latest price is $3.44". statmuse.com. Retrieved 7 November 2023.
  31. ^ "The complete list of world's billionaires 2000". statmuse.com. Retrieved 7 November 2023.
  32. ^ "The complete list of world's billionaires 2000". Retrieved 7 November 2023.
  33. ^ "The complete list of world's billionaires 2001". Retrieved 7 November 2023.
  34. ^ "The complete list of world's billionaires 2002". Retrieved 7 November 2023.
  35. ^ "The complete list of world's billionaires 2003". Retrieved 7 November 2023.
  36. ^ "The complete list of world's billionaires 2004". Retrieved 7 November 2023.
  37. ^ "The complete list of world's billionaires 2005". Retrieved 7 November 2023.
  38. ^ "The complete list of world's billionaires 2006". Retrieved 7 November 2023.
  39. ^ "The complete list of world's billionaires 2007". Retrieved 7 November 2023.
  40. ^ "The complete list of world's billionaires 2008". Retrieved 7 November 2023.
  41. ^ "The complete list of world's billionaires 2009". Retrieved 7 November 2023.
  42. ^ "The complete list of world's billionaires 2010". Retrieved 7 November 2023.
  43. ^ "The complete list of world's billionaires 2011". Retrieved 7 November 2023.
  44. ^ "The complete list of world's billionaires 2012". Retrieved 7 November 2023.
  45. ^ "The complete list of world's billionaires 2013". Retrieved 7 November 2023.
  46. ^ "The complete list of world's billionaires 2014". Retrieved 7 November 2023.
  47. ^ "The complete list of world's billionaires 2015". Retrieved 7 November 2023.
  48. ^ "The complete list of world's billionaires 2016". Retrieved 7 November 2023.
  49. ^ "The complete list of world's billionaires 2017". Retrieved 7 November 2023.
  50. ^ "The complete list of world's billionaires 2018". Retrieved 7 November 2023.
  51. ^ "Here Are Colorado's 11 Billionaires On Forbes 2019 List". Patch. March 5, 2019. Retrieved 7 November 2023.
  52. ^ "Forbes Profile: Charles Ergen". Forbes. January 2, 2021. Archived from the original on 2 January 2021. Retrieved 7 November 2023.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  53. ^ "Forbes Profile: Charles Ergen". Forbes. December 5, 2021. Archived from the original on 5 December 2021. Retrieved 7 November 2023.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  54. ^ "Forbes Profile: Charles Ergen". Forbes. December 17, 2022. Archived from the original on 17 December 2022. Retrieved 7 November 2023.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  55. ^ a b c "Forbes Profile: Charles Ergen". Forbes. November 7, 2023. Archived from the original on 7 November 2023. Retrieved 7 November 2023.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  56. ^ "DISH Network Corporation Class A Common Stock (DISH)". Nasdaq. 6 November 2023. Archived from the original on 7 November 2023. Retrieved 7 November 2023.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  57. ^ "EchoStar Corporation Common Stock (SATS)". Nasdaq. 6 November 2023. Archived from the original on 7 November 2023. Retrieved 7 November 2023.{{cite web}}: CS1 maint: bot: original URL status unknown (link)
  58. ^ "Why Dish Network Stock Plunged Today". The Motley Fool. 6 November 2023. Retrieved 7 November 2023.
  59. ^ "Charles Ergen". Forbes. Retrieved 2024-11-16.
  60. ^ a b "Entrepreneurs Unplugged: Charlie Ergen, Chairman, DISH Network". Lawweb.colorado.edu (Press release).
  61. ^ a b "Silicon Flatirons: Charlie Ergen, Chairman, DISH Network". 17 April 2012. Archived from the original on 29 September 2014. Retrieved 30 January 2014.
  62. ^ Smith, Steve (17 October 2012). "CEA Inducts CE Hall Of Fame Class of 2012". Twice.com. Twice Magazine. Archived from the original on 15 June 2018. Retrieved 15 May 2018.

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