DirectTV and dish network They are reportedly in advanced talks to merge, potentially creating the largest pay-TV provider in the US, with around 20 million subscribers. If completed, the deal could be announced in the coming days, the Wall Street Journal reported.
According BloombergDirecTV, owned by AT&T Inc. t and TPG Inc. TPGwill control the newly formed entity, although details are still under negotiation.
The two companies have been steadily losing customers, with viewers opting for cheaper and more flexible streaming services, such as Netflix Inc. NFLX.
A merger would help DirecTV and EchoStar Corp. SATowner of Dish, will better compete with streaming services while addressing Dish's rising debt levels.
charlie ergenco-founder of Dish, has long sought this combination, although regulatory concerns hampered previous merger attempts. However, moving from traditional pay television to streaming may change the position of regulators.
According to the WSJ report, DirecTV is currently serves about 11 million customers, while Dish has 8 million, which is a significant decline from its peak a decade ago.
The pay TV industry has faced increasing challenges as viewers transition to streaming, with subscribers in the US falling from 104 million in 2015 to less than 70 million in 2023. Both companies They look for ways to reduce costs and adapt to the rapidly evolving entertainment landscape.
The deal would also include Dish's streaming brand, Sling TV, which offers a broader range of services under the merged entity.
AT&T It previously spun off DirecTV in 2021 and moved it into a joint venture with TPG. The telecommunications giant took a $15.5 billion impairment charge in 2020 to account for subscriber losses, while Dish has shifted its focus toward building a wireless network, racking up debt in the process.
Regulatory hurdles remain a concern, particularly in rural areas where satellite television has been a dominant service.
Price action: At last check on Friday, SATS shares were up 4.62% to $26.95 during the pre-market session. T shares rose 0.18% to $21.69.
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Image via DirecTV
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