DirecTV to Acquire Dish and Sling in Major Deal
By Sheila Duncan
Reporter
Many of us use TV services like Dish, Direct, or various streaming channels. However, some changes are coming for Dish Network users.
DirecTV has announced its plans to acquire Dish TV and Sling TV from EchoStar, marking a long-awaited move aimed at enhancing its competitiveness against dominant streaming services. The acquisition, revealed on Monday, will involve a debt exchange transaction that includes a nominal payment of $1 and the assumption of EchoStar’s debt.
Rumors of a DirecTV-Dish merger have circulated for years, with discussions dating back over two decades when a proposed $18.5 billion deal was blocked by the Federal Communications Commission due to antitrust concerns. Since then, the pay-TV market has seen significant changes, as more consumers shift to online streaming options, leading to a decline in traditional satellite TV subscriptions.
DirecTV’s CEO, Bill Morrow, emphasized that the merger will enable the company to offer smaller content packages at lower prices, aiming to win back customers who have transitioned to streaming services. Since 2016, DirecTV and Dish have collectively lost 63% of their satellite subscribers.
He also stated that DirecTV operates in a highly competitive video distribution industry. With greater scale, they expect that a combined DirecTV and Dish will be better able to work with programmers and realize that their vision for the future of TV, which is to aggregate, curate, and distribute content tailored to customers’ interests.
This deal also presents a potential lifeline for EchoStar, which has been facing financial challenges, including the threat of bankruptcy. The company reported having only $521 million in cash and anticipates negative cash flows for the rest of the year, with over $1.98 billion in debt due in November.
EchoStar’s President and CEO, Hamid Akhavan, noted that an improved financial profile would allow the company to enhance its nationwide 5G Open RAN wireless network, providing more choices for U.S. wireless consumers and accelerating innovation.
As the news broke, EchoStar’s stock rose nearly 3% before the market opened. The DirecTV and Dish merger is expected to close in the fourth quarter of 2025, with the combined entity headquartered in El Segundo, California.
In a related development, AT&T announced it is selling its remaining stake in DirecTV to private equity firm TPG in a deal valued at approximately $7.6 billion.
