Telecom giant AT&T and its joint-venture partner TPG are reportedly in the early stages of discussions to merge their satellite TV service, DirecTV, with Dish Network, owned by EchoStar, according to a report from Bloomberg. This potential merger, if successful, would create the largest pay-TV provider in the United States with an estimated 16 million subscribers.
The two companies previously attempted a merger in 2002, but the U.S. Justice Department blocked the deal due to antitrust concerns. However, the landscape of the pay-TV industry has changed significantly since then, with the rise of streaming services like Comcast, Charter, Amazon Prime, YouTube TV, and Netflix. This could potentially pave the way for the merger to clear regulatory hurdles this time around.
A successful merger would bolster the combined company’s negotiating power with programmers, which is especially relevant in light of DirecTV’s ongoing carriage dispute with Disney that has resulted in millions of customers losing access to ESPN. For Dish, the merger would allow them to focus their resources on expanding their 5G wireless network.
Both DirecTV and Dish have declined to comment on the rumors according to Reuters. Cord Cutters News is reaching out for comment and will update our story as we learn more.
In a statement to Cord Cutters News, a DIRECTV spokesperson said, “Rumors about a potential transaction involving DIRECTV and Dish are nothing new, but we don’t comment on rumors and speculation.”
The potential merger comes at a time when the pay-TV industry is undergoing significant changes due to the growing popularity of streaming services. It also coincides with DirecTV’s very public dispute with Disney, which highlights the challenges faced by traditional pay-TV providers in negotiating with content creators.
If the merger goes through, it would mark a significant consolidation in the pay-TV industry and could have far-reaching implications for the future of television viewing.
Correction we updated the story to list Bloomberg as the correct first to report the story. We are very sorry for the mistake.