DirecTV reaches deal to buy Dish for $1

Two of the largest satellite television providers are merging to stay relevant in an industry dominated by streaming giants. DirecTV announced that it reached an agreement with rival Dish to acquire the company from its parent, EchoStar.

According to the deal, DirecTV will buy Dish and Sling from EchoStar for $1 and assume ~$9.75 billion in debt. The agreement would also transfer AT&T’s 70% stake in DirecTV to TPG for $7.6 billion.

The private equity firm bought 30% of DirecTV from AT&T in 2021. Through the deal, TPG will have complete ownership of the combined company, which will serve around 20 million customers.

The deal comes as American households are increasingly cord-cutting. Streaming platforms have taken over every aspect of entertainment, from movies to sports.

Declining subscribers
At the end of 2023, DirecTV had approximately 11.3 million subscribers, a significant drop from the 15.1 million subscribers reported in 2014 when AT&T acquired it for $47.1 billion.

Dish and Sling TV currently have around 6 million and 2 million subscribers, respectively. The merger would make DirecTV the largest satellite TV distributor in the US.

The companies expect to save at least $1 billion in costs and hope to offer better prices for customers.

However, the merger still needs approval from regulators, as a similar agreement between DirecTV and Dish was blocked in 2002 over competition concerns.