DirecTV and Dish Network, two long-time satellite TV competitors, have announced plans to merge in a deal valued at nearly $10 billion. DirecTV will acquire Dish’s parent company EchoStar's video distribution business, including Dish TV and Sling TV, for a nominal fee of $1, plus the assumption of Dish's $9.75 billion debt. The merger is expected to close in late 2025, pending regulatory approvals.
AT&T, which holds a 70% stake in DirecTV, will sell its share to private equity firm TPG for $7.6 billion. TPG already owns 30% of DirecTV, and the transaction will give the firm full control. The merger aims to create the largest pay-TV provider in the U.S., with nearly 20 million customers, although both companies have seen significant declines in subscriber numbers in recent years.
Bill Morrow, CEO of DirecTV, said, “With greater scale, we expect a combined DirecTV and Dish will be better able to work with programmers... and to be better positioned to realize operating efficiencies while creating value for customers through additional investment.”
The companies estimate that the merger could generate at least $1 billion in cost savings annually by the third year after the deal closes. However, analysts such as Craig Moffett of MoffettNathanson note that while the merger is expected to gain regulatory approval, its overall impact on the declining pay-TV industry may be limited.
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