In a landmark move that reshapes the pay-TV landscape, DirecTV and Dish Network today announced a definitive agreement to sell with DIRECTV, buying a majority of the company. This news comes on the heels of AT&T’s complete divestiture of DirecTV, selling its remaining 70% stake to TPG and effectively paving the way for this long-anticipated consolidation.
This deal will see DIRECTV buying DISH and Sling TV for $1 plus debt that will total about $11.7 billion. This comes as DISH has roughly $2 billion in debt coming in November but only $500 million in cash. DISH will keep its wireless business and Boost Mobile. Exact details of DISH’s parent companies’ continued ownership of this newly merged company are unknown at this time.
“This agreement is in the best interests of EchoStar’s customers, shareholders, bondholders, employees, and partners,” said Hamid Akhavan, President and Chief Executive Officer, EchoStar. “With an improved financial profile, we will be better positioned to continue enhancing and deploying our nationwide 5G Open RAN wireless network. This will provide U.S. wireless consumers with more choices and help to drive innovation at a faster pace. We expect DISH and EchoStar bondholders to benefit from two companies with stronger financial profiles and more sustainable capital structures.”
“DIRECTV was founded 30 years ago to give consumers greater choices than incumbent cable companies for video content, and the Company’s acquisition of DISH TV and Sling TV positions it to again provide more choices and better value in an industry currently dominated by large streaming platforms,” said David Trujillo and John Flynn, Partners at TPG. “Our ability to execute these transactions, alongside our proposed acquisition of AT&T’s 70% stake in DIRECTV announced earlier today, exemplifies the unique capabilities of the TPG platform and our experienced sector-focused investment approach as we support DIRECTV’s continued investment in innovating the next generation of video services that benefit consumers.”
The deal unites the two largest satellite TV providers in the United States, creating a combined entity with nearly 20 million subscribers. This new powerhouse will surpass Comcast and Charter to become the nation’s leading pay-TV distributor. This deal not only includes DISH but also SLing TV.
The deal, which has been rumored for years and even attempted in 2002 before being blocked by regulators, now faces a different regulatory climate. The rise of streaming services and cord-cutting have significantly altered the pay-TV market, potentially easing antitrust concerns.
Details of the merger agreement, including the final structure and leadership of the combined company, are still being finalized. However, sources suggest that DirecTV is expected to have a controlling interest in the new entity, with DirecTV’s leadership taking charge of the newly combined company.
This merger marks a significant turning point in the pay-TV industry, signaling a strategic response to the challenges and opportunities presented by the streaming era. It remains to be seen how regulators will view this deal and what the ultimate impact will be on consumers and the competitive landscape.
The deal is expected to close in the 4th quarter of 2025.