Proposed acquisition of Dish Network by DirecTV
On September 30, 2024, broadcast satellite and streaming company DirecTV reached an agreement to acquire Dish Network from EchoStar.[1] EchoStar and DirecTV expect the deal to close in the fourth quarter of 2025, contingent on regulatory approval and bondholders writing off nearly $1.6 billion in Dish-related debt.[2]
Background
[edit]In 2002, Dish Network chairman Charlie Ergen attempted to merge the network and DirecTV. Ergen's proposal was blocked by the Federal Communications Commission and the United States Department of Justice over concerns that the merger would harm competitors. The Department of Justice expressed objections to a potential merger in 2020 over the availability of broadband cellular networks in rural areas, according to The New York Times.[1]
Dish Network informed investors in August 2024 that it was unable to accrue additional capital to resolve US$2 billion in debt due in November; the company has an estimated US$500 million in liquidity.[1]
Agreement
[edit]On September 30, 2024, DirecTV agreed to acquire Dish Network and Sling TV for US$1. Under the agreement, DirecTV would take on Dish's debt. EchoStar, Dish Network's parent company, would continue to retain its wireless Boost Mobile and satellite connectivity businesses. Two-thirds of Dish Network's creditors must agree to the agreement and exchange their debt under DirecTV.[3]
Investment company TPG Inc. also announced that it would acquire a AT&T's 70% stake in DirecTV for US$7.6 billion, giving it complete ownership over the company. This deal is expected to close in the second half of 2025, regardless of the outcome of DirecTV's proposed acquisition of Dish Network.[4]
References
[edit]- ^ a b c Mullin, Benjamin; Hirsch, Lauren (September 30, 2024). "DirecTV Strikes Deal to Acquire Dish Network". The New York Times. Retrieved September 30, 2024.
- ^ Chapman, Michelle; Grantham-Philips, Wyatte (September 30, 2024). "Satellite service DirecTV buys rival Dish as it fights the onslaught of streaming services". ABC News. Retrieved 2024-09-30.
- ^ Vinn, Milana; Chmielewski, Dawn (September 30, 2024). "DirecTV clinches long-elusive deal to combine with Dish". Reuters.
- ^ "AT&T sells stake in DirecTV for $7.6 billion as it exits entertainment biz, as DirecTV buys Dish - CBS News". www.cbsnews.com. 2024-09-30. Retrieved 2024-09-30.