DirecTV buys rival Dish as satellite pillars weaken from onslaught of streaming services

Business

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

By WYATTE GRANTHAM-PHILIPS and MICHELLE CHAPMAN, Associated Press

September 30, 2024 | 9:03

DirecTV is buying Dish and Sling as a company, something it has pursued for years as it looks to better compete with dominant streaming services.

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

Rumors have long swirled about the prospect of a DirecTV and Dish merger, with headlines about reports of the talks appearing over the years. The two companies almost merged more than two decades ago, but the Federal Communications Commission blocked their owners’ $18.5 billion deal, citing antitrust concerns.

Since then, the pay TV market has changed significantly. As more consumers turn to online streaming giants, demand for more traditional satellites continues to wane. And while high-profile acquisitions have proven particularly difficult under the Biden-Harris administration, that could make regulators more willing to approve a DirecTV-Dish merger this time around.

The current deal could provide a key lifeline for EchoStar. The Colorado-based telecommunications company is reportedly facing the prospect of bankruptcy as it continues to waste cash and accumulate losses.

In a recent securities filing, EchoStar disclosed that it had just $521 million “on hand.” The company forecast negative cash flow for the remainder of the year while pointing to upcoming principal debt repayments, with more than $1.98 billion due in November.

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