is buying Dish and Sling as the company, a deal it has sought to complete for years, as seeks to better compete against streaming services that have become dominant.
DirecTV said Monday that it will acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that includes a payment of $1, plus an assumption of debt.
The prospect of a DirecTV-Dish combo has long been rumored, with headlines about popping up over the years. And the two almost merged more than two decades ago 鈥� but the Federal Communications Commission their owners鈥� then-$18.5 billion deal, citing antitrust concerns.
The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming giants, demand for more traditional satellite 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鈥檚 pairing this time around.
The current deal could provide a key lifeline for EchoStar. The Colorado-based telecommunications company has reportedly faced the prospect of bankruptcy as it continues to burn through cash and see losses pile up.
In a recent securities , EchoStar disclosed that it had just $521 million in 鈥渃ash on hand.鈥� And the company forecast negative cash flows for the remainder of the year 鈥� while also pointing to major looming debt payments, with more than $1.98 billion of debt set to mature in November.
Shortly before DirecTV made its announcement, AT&T said it was to private equity firm TPG in a deal valued at about $7.6 billion.
Wyatte Grantham-philips And Michelle Chapman, The Associated Press
