Direct-to-unionized broadcasting giants, DirecTV and Dish, reach an accord on a merger agreement
The "blending of DirecTV and Dish" is touted to positively impact American television consumers by strengthening the competition in an industry mainly controlled by tech giants and broadcasters' streaming services.
The merged service is projected to boast around 20 million subscribers.
DirecTV was born in 1994 by Hughes Electronics, and AT&T acquired it in 2015. On a particular Monday in 2021, AT&T split the company into two halves, with private equity group TPG acquiring one half. On the same day, TPG finalized the purchase of the other half.
Dish Network operates under EchoStar Corporation's umbrella.
For quite some time, whispers and speculations about a merger have been spreading around. In 2014, Bloomberg disclosed that former Dish chairman, Charlie Ergen, reached out to former DirecTV chief executive, Mike White.
However, back in 2002, the US government vetoed a potential $19 billion merger of the two companies due to antitrust concerns. As a result, Echostar was forced to fork over a $600 million penalty to Hughes, which was then under the control of General Motors at the time.
This story is still developing and will be updated.
The merged entity, combining DirecTV and Dish, aims to challenge the dominance of tech giants and streaming services in the media business. The new media company, expected to serve over 20 million subscribers, will operate in the competitive landscape of the television industry.
