* EchoStar board member to become Dish CEO
* Gives Ergen more time to focus on strategy - analyst
* Shares rise 2.5 pct
(Adds share move)
By Liana B. Baker and Rachana Khanzode
NEW YORK, May 16 Satellite television provider
Dish Network Corp (DISH.O) named Joseph Clayton as chief
executive, succeeding founder Charlie Ergen, who will continue
With Clayton overseeing day-to-day operations, Ergen will
have time to shape Dish's strategy, which appears to be
changing in light of recent deals, said Kaufman Bros analyst
"Ergen is looking to transform Dish with its acquisitions,"
"Clayton is a good pick," he added, because of his
experience as CEO and later chairman of Sirius XM radio,
another company with a subscription-based business model.
Clayton has also worked closely with Ergen since 2008 as a
board member of EchoStar Corp (SATS.O), Dish's sister company,
where Ergen is also chairman.
Ergen, a billionaire, is still the largest shareholder of
Dish and "there's no question that Dish is still his baby,"
Ergen has spearheaded a spate of acquisitions this year
that could transform Dish into a major provider of on-demand
video, analysts said. [ID:nL3E7F6164]
Last month, Dish won Blockbuster Inc BLOAQ.PK in a
bankruptcy auction for $320 million. Earlier this year, Dish
said it would expand its broadband spectrum by acquiring DBSD
North American, while EchoStar said it would buy Hughes
Communication, a satellite communications company.
Ergen has been vague about his plans for the newly acquired
companies and offered few details to analysts on a conference
call last quarter. Dish beat Wall Street's expectations last
quarter by adding subscribers and doubling its profit. The
company has 14.1 million subscribers.
Clayton will join Dish's board on June 20.
Clayton, 61, was CEO of Sirius XM Radio (SIRI.O) from 2001
to 2004, then served five years as Sirius' chairman until
Dish's shares rose 2.5 percent to $29.53 in early Nasdaq
(Editing by John Wallace and Maureen Bavdek)