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DirecTV and Dish Network Merge for $1, Assume $20 Billion Debt, Creating Largest US Pay-TV Provider with 20 Million Subscribers

Sep 30, 2024, 11:11 AM

DirecTV and Dish Network have agreed to merge, creating the largest pay-TV provider in the United States with approximately 20 million subscribers. The deal, which has been years in the making, involves DirecTV acquiring Dish from EchoStar for a nominal fee of $1 and assuming approximately $20 billion in debt. This merger is expected to help the combined entity better compete against streaming services and negotiate more favorable terms with content providers. The transaction is also linked to AT&T's decision to sell its remaining 70% stake in DirecTV to private equity firm TPG for $7.6 billion. The merger is expected to save $1 billion in costs annually. However, the deal's completion is not guaranteed as it must address Dish's highly distressed satellite bonds and regulatory approval challenges.