Bloomberg and other outlets are reporting that Dish and Direct TV are in advanced talks to merge their TV businesses. The deal would create the largest US pay-TV provider, with almost 20 million subscribers.
Dish has almost $2 billion in debt due in November, and they currently do not have the means to pay it. In addition, they are continuing to build out their Open RAN 5G Wireless network for Boost (and possibly some MVNOs in the future.)
An agreement could be announced this week. DirecTV would be in charge of the new “merged” company.
DirecTV is owned by AT&T and TPG, and has about 11 million customers. Dish is part of EchoStar and has about eight million subscribers. EchoStar and TPG are expected to remain investors.
Past discussions of a DirecTV-Dish merger have faced antitrust concerns, but the shift from pay TV to streaming has changed the competitive landscape. A deal would help them better compete with cable companies and streaming services such as Netflix Inc.
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