Major moves are being made in the satellite TV industry. Satellite TV provider DirecTV is acquiring its longtime rival — Dish Network — in a deal valued at nearly $10 billion.
The network is making the big move in an attempt to compete with the growing number of streaming services. The two sides announced the long sought-after merger on Monday, Sept. 30, which involves all of EchoStar’s satellite TV business. The deal also includes the streaming platform Sling TV.
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The two pay-TV operators will bring a combined 20 million subscribers into the merged company. In a statement DirecTV said it will pay a “nominal consideration” of $1 to buy EchoStar’s pay-TV business. The catch to the low price is that DirecTV has agreed to assume around $9.8 billion of Dish’s debt.
Also announced is that AT&T is selling its 70% stake in DirecTV to private equity firm TPG, a deal which is itself worth about $7.6 billion. DirecTV said the combined company will “have increased scale to incentivize programmers to allow” it to “deliver smaller packages at lower price points.”
EchoStar meanwhile says the transaction will help it build out its 5G network through its Boost Mobile brand.
Dish Network chairman Charlie Ergen was at the head of a previous push for a deal between the two companies, which was blocked in 2002 by the Department of Justice. Analysts say the deal will likely be allowed this time due to the changing landscape in the last two decades of the business of TV and streaming services.
Dish and DirecTV expect the deal to close in the fourth quarter of 2025.
