EchoStar chief Charlie Ergen can thank Newsmax boss Chris Ruddy for his meeting with President Trump – and maybe keeping the Dish Network’s parent company out of bankruptcy, On The Money has learned.
The pow-wow, reported by Bloomberg last week, provided a lifeline to Ergen’s struggling telecom provider by forestalling the Federal Communications Commission from seizing the company’s spectrum amid a wide-ranging investigation.
Telecom executives have been scratching their heads about why Trump would entertain Ergen, a controversial figure in telecom circles known to spread around campaign contributions mainly to Democrats.
What hasn’t been reported is that Ruddy played an instrumental role in setting up the Trump confab that as of now appears to have delayed or ended any significant FCC action, sources told On The Money.
The president agreed to meet with Ergen after Ruddy assured Trump that Ergen has never scuttled conservative programming on his Dish satellite service, according to people close to the matter.
Ruddy also argued to Trump that Ergen has made donations to prominent Republicans over the years, the sources added.
Reached by phone, Ruddy declined to comment but confirmed his involvement in the matter.
A White House spokesman had no comment. A press official for Ergen didn’t return a request for comment.
Ruddy and Ergen have been close for years, since Ergen’s Dish satellite network began running Newsmax programming in its formative years.
The former New York Post reporter founded the conservative media outlet in 1998 as a magazine. In recent years, it evolved into a significant presence in providing digital news and right-leaning television programming.
Newmax recently completed an initial public offering at $10 a share before its stock soared to as high as $223. It has settled back down to around $13.
In recent weeks, Ergen had tried to meet with Carr but to no avail, until Ruddy’s involvement, people with knowledge of the matter said.
The Ruddy-arranged sit-down reportedly led to a separate meeting with Brendan Carr, Trump’s FCC chair.
Carr didn’t respond to a request for comment.
EchoStar shares have surged nearly 50% since the meetings between the White House and Ergen.
Last month, the agency began an investigation into whether Ergen has been doing enough to build out a significant wireless network and meet deadlines to become a competitor to companies like Verizon and AT&T.
The FCC could seize those licenses if it finds that Ergen hasn’t taken the necessary steps to use them to build out its network.
If the FCC seized Ergen’s spectrum it would likely lead to a bankruptcy for Echostar.
According to published reports, EchoStar had considered a Chapter 11 bankruptcy filing amid the uncertainty of the FCC probe.
