DirecTV and Dish in Merger Talks Once Again Amid Competitive Streaming Market

Satellite-TV providers DirecTV and Dish are in talks to merge once again, according to Bloomberg, citing sources familiar with the discussions. The potential merger between AT&T (NYSE) and TPG Capital’s DirecTV and EchoStar’s (NASDAQ) Dish could create the largest pay-TV provider in the U.S.

This isn’t the first time the companies have explored a merger. In 2022, a similar attempt was blocked by the U.S. Justice Department due to antitrust concerns. The current discussions are still in early stages, and no agreement has been reached, with the possibility of talks ending without a deal.

While the merger could face antitrust scrutiny again, the pay-TV market has since evolved with the rise of streaming services like Amazon Prime Video, YouTube TV, Netflix, and others. These new players have expanded the competitive landscape, potentially influencing the outcome of regulatory reviews.

AT&T spun off DirecTV in 2021 as part of a deal with TPG Capital, maintaining a 70% financial stake in the satellite provider. Since then, AT&T has reportedly considered various options for DirecTV, including selling its stake or restructuring the joint venture.

The merger talks come amid other industry challenges, including Disney cutting access to its networks for over 11 million DirecTV subscribers after a failed distribution agreement renewal, adding pressure on traditional satellite-TV providers.