Form 4: Telluray Holdings Consolidates EchoStar Class B Shares

Telluray Holdings, an entity linked to Charles and Cantey Ergen, acquired 22.4 million Class B shares of EchoStar Corporation from family trusts.

Summary

• Telluray Holdings, LLC, a 10% owner and director of EchoStar Corporation (SATS), reported a change in beneficial ownership.
• On December 22, 2025, trusts established by Charles W. Ergen for the benefit of his family contributed 22,400,886 Class B shares of EchoStar to Telluray Holdings.
• In exchange for these shares, Telluray Holdings issued membership units to the trusts.
• Following this transaction, Telluray Holdings beneficially owns 2,350,696 shares of Class A Common Stock and 57,591,752 shares of Class B Common Stock.
• Class B shares are convertible into an equal number of Class A shares at any time for no additional consideration.
• Cantey M. Ergen, as a manager of Telluray Holdings, has sole voting power over the shares, while Mr. and Mrs. Ergen share dispositive power.

Sentiment

Score: 5

Explanation: The transaction is largely neutral as it represents an internal restructuring of ownership among related parties, with no direct impact on the company's operations or financial performance. It consolidates control within the Ergen family's holding entity.

Positives

• Consolidation of a significant block of Class B shares under Telluray Holdings, potentially simplifying the ownership structure for the Ergen family's EchoStar stake.
• The transaction involves no cash consideration for the conversion, indicating a structural change rather than a sale.

Future Outlook

The filing does not provide specific forward-looking statements or guidance, focusing solely on a past transaction.

Industry Context

This internal family transaction primarily impacts the ownership structure of EchoStar's controlling shareholders and does not directly reflect broader industry trends or competitive dynamics.

Related Party Transactions

• Trusts established by Mr. Ergen for his family contributed 22,400,886 Class B shares to Telluray Holdings, LLC, an entity managed by Mr. and Mrs. Ergen, in exchange for membership units. This constitutes a related-party transaction.

Stakeholder Impact

• Shareholders: The transaction consolidates voting and dispositive power over a significant block of shares within Telluray Holdings, which is controlled by the Ergen family. This reinforces the existing control structure but does not alter the total beneficial ownership of the Ergen family.
• Employees, Customers, Suppliers, Creditors: No direct impact on these stakeholders is indicated by this ownership restructuring.

Key Dates

Recommendation

This Form 4 filing details an internal restructuring of ownership within the Ergen family's holdings of EchoStar shares. It involves the contribution of Class B shares from family trusts to Telluray Holdings, an entity managed by Charles and Cantey Ergen, in exchange for membership units. This transaction does not represent an open market purchase or sale, nor does it alter the overall beneficial ownership of the Ergen family in EchoStar. As such, it has no direct operational or financial implications for EchoStar and does not provide a basis for a change in investment recommendation. The stock should be held based on existing fundamentals and market conditions, as this filing is neutral.

Keywords

EchoStar, SATS, Telluray Holdings, Charles Ergen, Cantey Ergen, SEC Form 4, Beneficial Ownership, Class B Shares, Insider Transaction, Corporate Governance