DirecTV acquires Dish in an effort to compete with streaming services
DirecTV said Monday it is acquiring rival satellite service Dish Network after years of talk about a possible merger.
If the deal is approved by government regulators, the combined company would become one of the largest distributors of paid TV in the US.
The move comes as the companies continue to face increasing competition from streaming services like Netflix and Hulu, as more people cut the cord on traditional satellite subscription services to save costs.
In one press releaseAccording to DirecTV and Dish’s parent company EchoStar, the merger will create a “more robust competitive force in a video industry dominated by streaming services owned by big tech companies and programmers.” The deal also includes EchoStar’s livestreaming brand Sling TV.
The acquisition, which will bring together approximately 20 million subscribers to the services, is aimed at providing consumers with “engaging video options,” along with “more choices and better value.”
EchoStar would keep other parts of the company intact, including its wireless business.
DirecTV said it will pay EchoStar $1 for Dish but assume $9.75 billion of its debt. At the same time, private equity firm TPG will acquire AT&T’s 70% stake in DirecTV. (In 2015, AT&T bought DirecTV in a blockbuster deal, but sold 30% to TPG years later).
A merger between DirecTV and Dish has been in the works for a long time. The companies tried to join forces in a $19 billion deal 22 years ago, but were blocked by the government due to monopoly problems.
