DirecTV to Acquire EchoStar’s Video Business, Including Dish and Sling TV, Creating Largest U.S. TV Provider

Satellite TV giant DirecTV and Charlie Ergen’s EchoStar said Monday that they have entered a definitive agreement under which DirecTV will acquire EchoStar’s video distribution business Dish DBS, including Dish TV and Sling TV, through a debt exchange transaction.

The combination “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 companies said. “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, CEO of 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.”

Added EchoStar president and CEO Hamid Akhavan: “This agreement is in the best interests of EchoStar’s customers, shareholders, bondholders, employees, and partners. 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.”