DirecTV Scoops Up a Major Rival

DirecTV is buying Dish and Sling, a deal it has sought to complete for years, as the company seeks to better compete against streaming services that have become dominant. DirecTV said Monday it will acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that includes a payment of $1, plus the assumption of debt, per the AP.

• History: 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.

• Changes: The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming giants, demand for more traditional satellite content 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.
• What the deal means: DirecTV said on Monday that the transaction will help it bring smaller content packages to consumer at lower prices. It's hoping this will appeal to those who've left satellite video services for streaming. The company said that combined, DirecTV and Dish have collectively lost 63% of their satellite customers since 2016.
• EchoStar: The current deal could provide a key lifeline for the firm. The Colorado-based telecommunications company has reportedly faced the prospect of bankruptcy as it continues to burn through cash and see losses pile up. "With an improved financial profile, we will be better positioned to continue enhancing and deploying our nationwide 5G Open RAN wireless network," EchoStar President and CEO Hamid Akhavan said. "This will provide US wireless consumers with more choices and help to drive innovation at a faster pace." EchoStar's stock climbed nearly 3% before the market open.
• Future: The DirecTV and Dish deal is targeted to close in 2025's fourth quarter. The combined company will be based in El Segundo, California.

(More DirecTV stories.)