DirecTV buys competing Dish Network and Sling for $1

DirecTV is buying Dish and Sling, something it has pursued for years as the company tries 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.

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DirecTV said Monday that the deal will help it deliver smaller packages of content to consumers at lower prices. We hope this appeals to those who have abandoned satellite video services in favor of streaming. The company reported that since 2016, DirecTV and Dish combined have lost 63% of their satellite TV customers.

“DirecTV operates in the highly competitive video distribution industry,” DirecTV CEO Bill Morrow said in a statement. “We expect that with greater scale, the combined DirecTV and Dish will be better able to work with developers to realize our vision for the future of television, which is to aggregate, curate and distribute content tailored to customer interests and be better able to achieve operational efficiencies, creating while providing value to customers through additional investments.”

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.

“With an improved financial profile, we will be in a better position to continue to enhance and deploy our nationwide 5G Open RAN wireless network,” said Hamid Akhavan, president and CEO of EchoStar. “This will provide American wireless consumers with more choice and help drive innovation faster.”

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EchoStar shares rose almost 3% pre-market.

The DirecTV and Dish transaction is expected to close in the fourth quarter of 2025. The combined company will be headquartered in El Segundo, California.

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.