DirecTV secures long-awaited merger with Dish

DirecTV announced today it will acquire EchoStar's (NASDAQ:SATS) satellite television business, which includes Dish TV, marking the culmination of years of intermittent talks.

The acquisition comes as both DirecTV and Dish have seen their market share erode in the face of rising competition from streaming giants like Netflix (NASDAQ:NFLX) and Amazon's (NASDAQ:AMZN) Prime Video.

As part of the agreement, DirecTV will pay $1 for Dish DBS, which includes Dish and Sling TV, while assuming approximately $9.75 billion of Dish's debt.

While an exchange offer will be launched at a discounted rate to help Dish extend the maturity of its obligations, Dish bondholders will be asked to accept a reduction of about $1.57 billion on the debt.

The transaction offers EchoStar a financial lifeline as it grapples with over $20 billion in debt.

Meanwhile, the company will also receive $2.5 billion in financing from buyout firm TPG's credit unit, Angelo Gordon, and DirecTV to help settle a $2 billion bond due in November. 

For AT&T (NYSE:T), this deal signifies an exit from its 70% stake in DirecTV, which it is selling to TPG for $7.6 billion.

The deal is expected to close in the fourth quarter of 2025, subject to regulatory approvals.