DirecTV announced today that it will acquire EchoStar’s video distribution assets, including DISH TV and the streaming service Sling TV.
According to the announcement, the acquisition of its video assets will allow EchoStar — which merged with DISH in January — to improve its financial profile and focus on its 5G wireless network. Meanwhile, DirecTV’s acquisition of DISH and Sling TV will allow DirecTV to “have increased scale to incentivize programmers to allow DIRECTV to deliver smaller packages at lower price points.”
DirecTV, which is owned by AT&T, will acquire DISH for only $1. But DirecTV will also assume DISH’s debts, which are reported to be billions of dollars. The merger is subject to regulatory approval.
“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.”
DirecTV is touting the merger as a chance to have greater control over satellite video distribution and, through a greater market share, to improve the overall experience for customers.
“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.”
