As the pay-TV sector continues its downward spiral, DirecTV and Dish Network — two longtime rivals that have explored joining up at various times for years — may be headed to the altar. DirecTV is in talks with EchoStar , Dish’s parent company, to acquire Dish and Sling TV, according to reports by Bloomberg, the Wall Street Journal and CNBC. A deal could be finalized as early as Monday, Sept.
30, per the reports. Reps for DirecTV and Dish didn’t respond to requests for comment. The deal is being driven by EchoStar CEO Charlie Ergen’s desire to pay off $1.
98 billion of debt that matures in November 2024, CNBC reported. The company’s debt load has raised the specter of EchoStar seeking a bankruptcy reorganization if it can’t raise new capital or refinance the debt. DirecTV launched in 1994 and Dish followed in 1996, and the two satellite TV companies provided robust competition to incumbent cable TV operators.
But in the past decade, both have seen their subscribers rolls shrink by the millions (as has traditional cable TV) with the rise of streaming prompting a consumer exodus from the sector. DirecTV and Dish have launched internet-delivered pay-TV packages, but those have not offset losses on the satellite side. Together, DirecTV and Dish have nearly 20 million customers, which is down roughly half from their peak levels.
DirecTV service had an estimated 11.3 million subscribers (inclusive of AT&T U-verse TV) as of the end of 2023, according to estimates from L.
