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DirecTV will buy rival Dish to create
massive pay-TV company after yearslong pursuit
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[September 30, 2024]
By WYATTE GRANTHAM-PHILIPS and MICHELLE CHAPMAN
DirecTV is
buying Dish and Sling as the company, a deal it has sought to complete
for years, as seeks to better compete against streaming services that
have become dominant. |
A DirectTV logo identifies the company's headquarters in Caracas,
Venezuela, Friday, May 22, 2020. (AP Photo/Ariana Cubillos, File) |
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DirecTV said Monday that it will acquire Dish TV and Sling TV
from its owner EchoStar in a debt exchange transaction that
includes a payment of $1, plus an assumption of debt.
The prospect of a DirecTV-Dish combo has long been rumored, with
headlines about reported talks popping up over the years. And
the two almost merged more than two decades ago — but the
Federal Communications Commission blocked their owners’
then-$18.5 billion deal, citing antitrust concerns.
The pay-for-TV market has shifted significantly since. As more
and more consumers tune into online streaming giants, demand for
more traditional satellite continues to shrink. And, although
high-profile acquisitions have proven to be particularly tough
under the Biden-Harris administration, that may make regulators
more inclined to approve DirecTV and Dish’s pairing this time
around.
The current deal could provide a key lifeline for EchoStar. The
Colorado-based telecommunications company has reportedly faced
the prospect of bankruptcy as it continues to burn through cash
and see losses pile up.
In a recent securities filing, EchoStar disclosed that it had
just $521 million in “cash on hand.” And the company forecast
negative cash flows for the remainder of the year — while also
pointing to major looming debt payments, with more than $1.98
billion of debt set to mature in November.
Shortly before DirecTV made its announcement, AT&T said it was
selling its remaining stake in DirecTV to private equity firm
TPG in a deal valued at about $7.6 billion.
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