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The Department of Justice is signaling a shift in antitrust policy as companies once bared from undergoing mega mergers are now permitted to move forward. DirecTV has agreed to buy Dish from current owner EchoStar, taking on Dish's nearly $10 billion in debt. The deal would create the largest U.S. pay-TV distributor by subscribers and would bolster both brands’ profits as their customer bases erode in the competitive streaming era. Private-equity firm TPG has also agreed to buy AT&T’s remaining stake in DirecTV for about $7.6 billion and merge the satellite company with Dish in a one-two punch designed to keep the pay-TV provider. A combined DIRECTV and DISH will be able to work with programmers to curate, and distribute content tailored to customers’ interests, and be better positioned to realize operating efficiencies while creating value for customers. Both companies almost merged more than two decades ago — but the Federal Communications Commission blocked their owners’ then-$18.5 billion deal, citing antitrust concerns. The pay-for-TV market has shifted significantly since then as more and more consumers tune into online streaming giants, demand for more traditional satellite continues to shrink, and the line between satellite broadcasters and the media companies that feed them content has all but disappeared. Dish and Direct TV need each other to cut costs and negotiate with programmers and channel owners. The competition is no longer each other, but big tech. This is a strategic move for AT&T as well since the company is getting out of entertainment and focusing on 5G and fiber connectivity while EchoStar Corporation is avoiding bankruptcy by getting the debt-laden TV unit off its hands. The deal is expected to close in the fourth quarter of 2025, subject to regulatory approvals, and has the potential to generate cost synergies of at least $1 billion per annum. #tech #tv #satellite #merger Disclosure: This article is for informational purposes only and should not be construed as legal, regulatory, tax, accounting, or investment advice. It expresses the views of the author as of the date indicated and such views are subject to change without notice. Quaestor Consulting Group ("QCG") has no duty or obligation to update the information contained herein. Certain information contained herein is based on or derived from information provided by independent third-party sources. QCG believes that the sources from which such information has been obtained are reliable; however, it has not independently verified the accuracy or completeness of such information or the assumptions on which such information is based. QCG makes no representation, and it should not be assumed that past investment performance is an indication of future results. Moreover, wherever there is the potential for profit there is also the possibility of loss.

DirecTV is set to acquire its long-time satellite rival, Dish, in a deal valued at nearly $10 billion, but the actual purchase price is just $1, with DirecTV assuming Dish’s $9.75 billion debt. 💼 DirecTV’s Bold Move: By acquiring Dish for $1, along with assuming $9.75 billion in debt, DirecTV aims to strengthen its position in a shrinking satellite TV market, with the deal expected to close by late 2025. 📉 Decline in Subscribers: The combined DirecTV-Dish entity will serve about 18 million customers, down from their 2016 peak due to cord-cutting and the rise of streaming services. 💸 Financial Restructuring: TPG will buy AT&T's 70% stake in DirecTV for $7.6 billion, while DirecTV assumes Dish’s $9.75 billion debt, providing significant financial relief to EchoStar. ⚖️ Regulatory Approval Anticipated: Analysts expect the deal to pass U.S. regulatory scrutiny, as competition in satellite TV has significantly diminished. 🚀 Focus on the Future: With this merger, DirecTV and Dish aim to negotiate better deals with content creators, seeking operational efficiencies to stay competitive. #MergersAndAcquisitions #SatelliteTV #TelecomNews 📡 DirecTV and Dish have struggled as consumers shift to streaming services, but together they aim to enhance their content offerings and regain market leverage. 🏦 The merger also alleviates Dish’s financial stress, allowing EchoStar to focus on expanding its wireless 5G network and Boost Mobile operations. 🛠 DirecTV expects to save over $1 billion annually by consolidating operations, though layoffs may be part of the plan. ♻️ Repost if you enjoyed this post, and follow me César Beltrán Miralles for more curated content about telecom! https://lnkd.in/gve4gf-E

DirecTV’s buying its rival for $1 (kinda) In the satellite TV equivalent of Godzilla and Kong teaming up against Skar King, DirecTV announced it’s buying longtime rival Dish for $1 in a deal that unites the two providers as they fight to maintain relevance in the age of streaming. The complex deal entails DirecTV buying Dish (and Sling) from its parent company, EchoStar, for $1 and the assumption of nearly $10 billion in debt. At the same time, private equity firm TPG will buy AT&T’s 70% stake in DirecTV for $7.6 billion, giving TPG full ownership of the combined company (it bought the other 30% of DirecTV from AT&T in 2021). It’s a bid to save the satellites. The two companies have lost a combined 63% of their customers since 2016. The merger will make DirecTV the largest US TV distributor, with 18 million subscribers—a number that CEO Bill Morrow hopes will help it negotiate better deals and offer smaller packages, so customers aren’t forced into paying for the Bob Ross Channel and Disney Junior. Looking ahead…the deal is subject to regulatory approval—though Morrow said he’s confident that regulators won’t block the merger (which they did the last time the companies tried to merge in 2002)—before DirecTV upholds its promise to investors to cut $1 billion in costs annually. That’s typically corporate speak for layoffs.—CC https://lnkd.in/gciqTd9W

DIRECTV and DISH Network are merging in a $10 billion deal that would create the nation’s largest pay-TV provider. The question surrounding this proposed merger isn’t why, but what took so long? Viewers have cut the cord at an alarming rate, leaving all pay-TV operators in an existential crisis. Combined, the two companies say they will have roughly 18 million customers. That’s a head-spinning 63 percent plunge from peak subscriber numbers in 2016. Compare that to others in the industry - both Charter and Comcast had about 13 million subscribers as of the end of the second quarter. DirecTV CEO Bill Morrow said, “With greater scale, we expect a combined DirecTV and Dish will be better able to work with programmers to realize our vision for the future of TV, which is to aggregate, curate and distribute content tailored to customers’ interests, and to be better positioned to realize operating efficiencies while creating value for customers through additional investment.”

✅🖥️ Yahoo/Bloomberg (9/26): “DirecTV, founded in 1994 by Hughes Electronics, is owned by AT&T Inc. and TPG Inc., and has about 11MM customers. Dish, started in 1980 by billionaire Charlie Ergen, is part of his EchoStar Corp. and has about 8MM subscribers. EchoStar and TPG are expected to remain investors, the people said. While past discussions of a DirecTV-Dish combination have faced antitrust concerns, the shift from pay TV to streaming has changed the competitive landscape, potentially making the path easier this time. A deal would help them better compete with cable companies and streaming services such as Netflix Inc. A merger of the two largest satellite-TV providers would come at a challenging time for the pay-TV industry, which has been losing customers. It would also cap years of speculation about consolidation in the satellite-TV business. EchoStar just closed its acquisition of Dish in December. The pay-TV industry, including cable and satellite, had 104MM US subscribers in 2015, according to data compiled by Bloomberg Intelligence. That has shrunk to less than 70MM this year as services including Netflix and Amazon Prime video have scooped up viewers.” ⬇️ #addressable #streaming #MVPD #vmvpd #ctv #tvos #ott https://lnkd.in/dawNq2q3

🚀 NEW REPORT from Rethink TV 📖 Executive Summary: https://lnkd.in/eF-DP_QJ The cost of doing business is trending upwards, for the operators captured in this report. Crucially, this includes both capex and opex, despite what some industry positions state. Thanks to mergers and product portfolio expansions, all bar DirecTV have feet in multiple camps. Triple-play is essentially a de facto position, with quad-play a reality for many. As such, drawing lines between different operators based on technologies deployed or heritage becomes a dicey affair. What can be seen is the impact of changing capex and opex burdens on the operating and net income of this group. Pay TV subscriber counts continue to plummet, but the growth seen in mobile is not solely due to new consumer users. #PayTV #Broadband #Mobile #Operators Rethink TV

DirecTV and Dish Network are set to get hitched, and it's not just for the TV remote-sharing benefits! - DirecTV is acquiring Dish Network through a complex multi-step transaction that involves TPG acquiring a majority stake in DirecTV from AT&T for $7.6 billion, with DirecTV then purchasing Dish for $1 and assuming its $2 billion debt. - The merger between DirecTV and Dish Network would create a formidable player in the satellite TV industry with around 19 million subscribers, surpassing Comcast's 13.2 million but vastly trailing Netflix's nearly 300 million. - The deal, targeted for closure in the second half of 2025 and subject to regulatory approval, has historical precedent with a 2002 denied merger, and faces current scrutiny due to its potential impact on rural 5G wireless service alternatives. #DirecTV #Dish_Network #Satellite_TV #PayTV #Streaming #TPG #AT&T # #TPMC https://lnkd.in/gH6_FRbT Author: Lawrence Bonk

Wild to see the DIRECTV and DISH Network merger finally announced after years of talks. DIRECTV has lost roughly half its subscribers in the past decade. The Pay TV business is not coming back in the traditional form and even the growth in virtual providers such as YouTube TV will only make up for a small fraction of the losses. I spent 6 years at DIRECTV and my role involved spending a lot of time analyzing the competitive environment. In today's on demand world, the old fashioned TV bundle doesn't work for most consumers. The only ones it really appeals to are sports fans but now with sports content, even NFL content, "leaking" out to Prime Video, Apple, Peacock etc, the melting is accelerating. The traditional customer base is dying off. This merger will buy additional time but will not change the end of the story. Not only are the Pay TV providers (DIRECTV, Comcast, Charter) affected, but this is a prime driver behind the layoffs we are seeing at Disney, Paramount etc. https://lnkd.in/g4RFwCbC

It's been a telecom merger Monday. DirecTV announced today it's buying Dish in a deal that will create the biggest pay-TV provider in the US, confirming several Bloomberg News scoops from yours truly that the deal was in the works. This combination has been a long time coming. The two tried to merge more than 20 years but the attempt was scuttled by regulators who were concerned it would be anticompetitive. Fast forward a few decades and a deal today may be key to survival for these two satellite TV providers who have lost more than 60% of their customers in the last 8 years as customers have cut the cord. The deal hinges on two things: regulatory approval and Dish creditors agreeing to take a couple billion dollar haircut on some $11.6 billion of bonds to the company. https://lnkd.in/e27U46JU

The DirecTV-Dish merger was inevitable. And I’d argue it’s 𝑡𝑜𝑜 𝑙𝑖𝑡𝑡𝑙𝑒 𝑡𝑜𝑜 𝑙𝑎𝑡𝑒. Think about it. For years, these legacy media companies competed with each other, apparently oblivious to the seismic shift happening in the industry. While they battled for satellite subscribers, platforms like Netflix, Prime Video, AppleTV+, and heck, even Hulu created a new media landscape.  Today, big tech dominates across the board. The streamers have: • Created data-driven entertainment platforms to drive personalization • Invested $20B/year + in award-winning scripted content   • Outbid legacy media for live sports broadcasting rights • Delivered a superior TV UX with a lighter ad load So while DirecTV’s acquisition of Dish is being branded as the creation of ‘America’s largest pay TV provider,’ there’s a reason this deal isn’t getting challenged on antitrust grounds. Legacy media is hemorrhaging market share. And mergers like this are merely a form of life support. The real question is, how long can they hold on?