DirecTV and Dish Network, two longtime satellite TV competitors, are officially merging after two decades of on-again, off-again discussions. The deal, valued at nearly $10 billion, will see DirecTV acquire Dish’s satellite TV business and its streaming arm, Sling TV, creating what will become the largest pay-TV provider in the U.S.
The transaction is structured as a debt exchange, with DirecTV assuming $9.75 billion of Dish’s debt. In exchange, Dish’s parent company, EchoStar, will receive a nominal consideration of $1. Pending regulatory approval, the acquisition is set to close in the fourth quarter of 2025.
A Merger Decades in the Making
This merger comes after decades of speculation, first being proposed in 2002. At the time, the Federal Communications Commission (FCC) blocked the deal over antitrust concerns. Fast forward to today, the video landscape has shifted dramatically as cord-cutting and the rise of streaming services have decimated traditional pay-TV businesses. Both DirecTV and Dish have seen sharp declines in subscribers, with the combined companies now serving about 18 million customers—a significant drop from their peak in 2016 when the two counted nearly 40 million subscribers between them.
Analysts widely expect the merger to receive regulatory approval this time, especially given the industry’s shift toward streaming, which has reduced concerns over competition. DirecTV’s CEO Bill Morrow even addressed these regulatory concerns head-on, stating that the merger would not result in any significant loss of competition, even in rural markets where satellite TV once dominated.
TPG Takes Full Ownership of DirecTV
In a related transaction, AT&T announced that it would sell its remaining 70% stake in DirecTV to private equity firm TPG, which already owns 30%, for $7.6 billion. This move allows AT&T to fully exit the TV business, a decision that aligns with its ongoing focus on wireless and fiber-based services.
With AT&T’s exit, TPG will assume full control of DirecTV, which will also take the reins of Dish once the merger closes. Morrow will remain CEO of the combined entity, with Ray Carpenter continuing as CFO. The company will be headquartered in El Segundo, California.
Consolidation in a Declining Market
Despite the merger’s size, many analysts remain cautious about its long-term impact. Craig Moffett of MoffettNathanson warned that the combined company is unlikely to reverse the broader trend of declining pay-TV subscriptions. “It’s hard to argue that a merger shouldn’t happen; it clearly should. Consolidation during a period of secular decline is always to be expected,” Moffett said. “But it would be a mistake to overestimate its importance. Adding a year or so to the expected life of satellite TV isn’t going to change the narrative for programmers, distributors, or even for satellite TV.”
DirecTV estimates that the merger will generate $1 billion in annual cost savings by the third year, mainly through operating efficiencies. However, there are doubts about potential synergies, as the two companies operate distinct satellite networks, making consolidation of their satellite infrastructure difficult. This raises questions about how much value the merger will ultimately create beyond cost-cutting.
Sling TV and Streaming Challenges
Dish’s streaming service, Sling TV, is also part of the deal, though its future remains uncertain. Sling was once seen as a leader in the early days of internet-delivered TV packages but has since struggled to compete with larger, more well-funded players like YouTube TV, Hulu Live, and Netflix. The combined company will need to navigate the complexities of balancing its legacy satellite business with its streaming aspirations, an area where both companies have so far failed to offset subscriber losses.
This merger also highlights the shifting power dynamics in the industry. Both DirecTV and Dish have lost leverage in programming distribution talks, particularly after DirecTV lost its exclusive rights to the NFL’s Sunday Ticket to YouTube TV in 2022. The deal with YouTube marked a significant blow for DirecTV, as Sunday Ticket was a major draw for its satellite service for nearly 30 years.
Wrapping Up
The deal brings a sense of finality to two companies that were once fierce rivals in a competitive pay-TV market but now face the same existential crisis brought on by streaming services. DirecTV and Dish’s combined entity will need to carefully chart its course through a rapidly evolving media landscape that continues to favor digital platforms.
More reactions and analyses are expected to emerge in the coming days as stakeholders assess the broader implications of this merger. We reached out to The Streaming Madman, who told us he’ll be providing his no-holds-barred take later this week. Stay tuned for his detailed insights on what this deal means for the future of satellite TV and the broader media ecosystem.
