Satellite TV Giants DirecTV and Dish Near Merger

  Rassegna Stampa, Social
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If at first, you don’t succeed, try, try again: Satellite television giant DirecTV is on the verge of acquiring its biggest rival, Dish, with a deal possible as soon as Monday, The Wall Street Journal reports.

Dish’s Sling TV streaming platform would also be part of the deal.

According to the Journal, the potential merger would enable DirecTV owners AT&T and private equity firm TPG to slash expenditures, while Dish owner EchoStar would gain the means to satisfy upcoming debt payments.

The emergence of streaming platforms has taken its toll on both satellite services, as New Street Research pegged their combined U.S. subscriber total at roughly 20 million, significantly down from their heyday about 10 years ago, the Journal reports.

Losing its exclusive arrangement with the National Football League for the NFL Sunday Ticket out-of-market games package to YouTube TV starting this season was also a blow to DirecTV, which had held those rights since 1994.

DirecTV and Dish have explored merging in the past, but regulators expressed concerns over the combined company representing the only pay TV option in rural areas, the Journal reports, adding that the rise of streaming services, as well as the availability of over-the-air broadband connectivity alternatives, such as Elon Musk-owned Starlink, may make the transaction more palatable this time around.

AT&T acquired DirecTV for $49 billion in 2015, according to the Journal, divesting its Latin America operations in 2021 and selling a 30% stake to TPG later that year in a deal that valued the satellite TV provider at just $16 billion.

Meanwhile, EchoStar founder Charlie Ergen combined EchoStar and Dish into a single company in January, the Journal reports, with the aim of helping CEO Hamid Akhavan navigate debt payments that will start coming due in November.

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