DirecTV has inked a deal to acquire EchoStar's video distribution business, including Dish TV and Sling TV. #pressrelease
September 30, 2024
DIRECTV (the "Company") and EchoStar (NASDAQ: SATS) today announced that they have entered into a definitive agreement under which DIRECTV will acquire EchoStar's video distribution business DISH DBS ("DISH"), including DISH TV and Sling TV, through a debt exchange transaction.
The combination of DIRECTV and DISH will benefit U.S. video consumers by creating a more robust competitive force in a video industry dominated by streaming services owned by large tech companies and programmers. The transaction will provide consumers with compelling video options while separately improving EchoStar's financial profile as it continues to enhance and further deploy its nationwide 5G Open RAN wireless network.
"DIRECTV operates in a highly competitive video distribution industry," said Bill Morrow, Chief Executive Officer, DIRECTV. "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."
"This agreement is in the best interests of EchoStar's customers, shareholders, bondholders, employees, and partners," said Hamid Akhavan, President and Chief Executive Officer, EchoStar. "With an improved financial profile, we will be better positioned to continue enhancing and deploying our nationwide 5G Open RAN wireless network. This will provide U.S. wireless consumers with more choices and help to drive innovation at a faster pace. We expect DISH and EchoStar bondholders to benefit from two companies with stronger financial profiles and more sustainable capital structures."
A combination of DIRECTV and DISH will help the new company provide consumers with more choices and better value. The combined video company is expected to:
Have increased scale to incentivize programmers to allow DIRECTV to deliver smaller packages at lower price points.
Be better positioned to bring together multiple content sources in one easily accessible place.
Have an enhanced ability to make the investments required to improve its streaming services.
Improve the viability of the satellite platform by realizing efficiencies of some shared fixed infrastructure and operating expenses.
Continue to provide the broadest array of programming and diverse voices available on pay TV, including local news.
The transaction will also benefit U.S. wireless consumers by allowing EchoStar to focus on enhancing and further deploying its 5G Open RAN cloud-native wireless network.
Read the full press release here.
You May Also Like
