Skip to content

DirecTV will buy rival Dish to create massive pay-TV company after yearslong pursuit

53a023452a2ae9c42123b5ac179a5a1b82c7bb51f5a86c01a490740c25ff538b
FILE - The company logo hangs over the door to a AT&T telephone store Thursday, Feb. 22, 2024, in Denver. (AP Photo/David Zalubowski, File)

DirecTV is buying Dish and Sling as the company, a deal it has sought to complete for years, as seeks to better compete against streaming services that have become dominant.

DirecTV said Monday that it will acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that includes a payment of $1, plus an assumption of debt.

The prospect of a DirecTV-Dish combo has long been rumored, with headlines about reported talks popping up over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked their owners’ then-$18.5 billion deal, citing antitrust concerns.

The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming giants, demand for more traditional satellite continues to shrink. And, although high-profile acquisitions have proven to be particularly tough under the Biden-Harris administration, that may make regulators more inclined to approve DirecTV and Dish’s pairing this time around.

The current deal could provide a key lifeline for EchoStar. The Colorado-based telecommunications company has reportedly faced the prospect of bankruptcy as it continues to burn through cash and see losses pile up.

In a recent securities filing, EchoStar disclosed that it had just $521 million in “cash on hand.” And the company forecast negative cash flows for the remainder of the year — while also pointing to major looming debt payments, with more than $1.98 billion of debt set to mature in November.

Shortly before DirecTV made its announcement, AT&T said it was selling its remaining stake in DirecTV to private equity firm TPG in a deal valued at about $7.6 billion.

Wyatte Grantham-philips And Michelle Chapman, The Associated Press


Looking for National Business News?

VillageReport.ca viewed on a mobile phone

Check out Village Report - the news that matters most to Canada, updated throughout the day.  Or, subscribe to Village Report's free newsletter: a compilation of the news you need to know, sent to your inbox at 6AM.

Subscribe