On September 30, two companies that had been flirting with the idea of merger for over ten years announced they had finally entered into an agreement. In the United States and Puerto Rico, Satellite TV giant DirecTV is to acquire Dish, also an important Satellite TV provider, from Echostar. As a result, both DTH providers will operate on a joint basis. The transaction includes Dish’s satellite TV business and Pay TV streaming service Sling TV.
In a press release, the acquiring company provided the following explanations: “The combination of DirecTV and Dish will benefit U.S. video consumers by creating a more robust competitive force in a video industry dominated by streaming services owned by large tech companies and programmers.” “Streaming services owned by large tech companies and programmers now have subscription numbers that far exceed those of pay TV distributors. Content that was historically the mainstay of traditional pay TV – news, sports, and entertainment – is now available exclusively or first-run on direct-to-consumer streaming services. The vast majority of consumers who leave satellite video are cutting the cord for streaming services. Combined, DirecTV and Dish have collectively lost 63% of their satellite customers since 2016.”
The transaction will be made in exchange for a nominal consideration of USD 1 because DirecTV will assume Dish’s debt, which amounts to approximately USD 9.75 billion.
At the same time, investment fund TPG announced an agreement to acquire from telecommunications behemoth AT&T 70% of DirecTV and as a result TPG, which has held a 30% stake in DirecTV since 2021, will gain 100% control of the company. It has been reported that AT&T is to receive 7.6 billion.
According to information provided by DirecTV, these are two independent transactions and neither of them is contingent on the other. Both are subject to approval by US regulatory agencies. It is estimated that the acquisition of Dish will be completed in “the last quarter of 2025”, while the transaction between TPG and AT&T is expected to close in “the second half of 2025”.
