DirecTV To Merge With Dish As AT&T Exits Pay TV

Date:

DirecTV will buy rival Dish TV from EchoStar (SATS), forging the largest U.S. pay-TV provider. Earlier Monday, AT&T (T) agreed to sell its remaining 70% stake in DirecTV to private equity firm TPG (TPG) for about $7.6 billion.

AT&T stock rose slightly and EchoStar fell. TPG stock dipped.





X



NOW PLAYING
Stocks Mixed But Cap Solid Week: Cava, Ryan Specialty, Eli Lilly In Focus



DirecTV Deals

DirecTV will acquire EchoStar’s video distribution business, including Dish TV and the streaming service Sling TV. It will pay just $1, but assume $9.8 billion in debt.

The deal requires bondholders to write off some $1.6 billion in Dish-related debt.

A variety of U.S. regulatory agencies must sign off on the deal. The Federal Communications Commission blocked a merger between the two satellite TV providers in 2002.

Private-equity firm TPG will give $7.6 billion in cash payments through 2029 for the remaining 70% stake in AT&T. AT&T sold a 30% stake in 2021 to TPG.

AT&T will exit the entertainment business with the deal, in line with its strategy of paring debt on focusing on its wireless and broadband businesses.

AT&T acquired DirecTV for $48.5 billion in 2014.

AT&T Stock

AT&T stock edged up 0.5% to 22.01 shortly after the open Monday. The Dow Jones component hit a three-year high of 22.34 on Sept. 16.

EchoStar stock slumped 4.9% to 26.67.

TPG stock slipped 3 cents to 57.98.

Please follow Ed Carson on Threads at @edcarson1971 and X/Twitter at @IBD_ECarson for stock market updates and more.

YOU MIGHT ALSO LIKE:

Why This IBD Tool Simplifies The Search For Top Stocks

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader

Best Growth Stocks To Buy And Watch

IBD Digital: Unlock IBD’s Premium Stock Lists, Tools And Analysis Today

Futures Fall As China Stocks Fly; These Stocks Are Near Buy Points

Share post:

Popular

More like this
Related

Draymond praises Poole’s growth with Wizards despite taunting exchange

Draymond praises Poole's growth with Wizards despite taunting exchange...

🔴 UCL LIVE: PSV and Dinamo Zagreb in cruise control

Cue the anthem! The Champions League is back on...

Fantasy Football Week 10 Rankings: Flex (Full-PPR)

We're halfway through the fantasy football season, and it...

Fantasy Football Week 10 Rankings: RBs (Full-PPR)

The Chicago Bears' offense has had fantasy football managers...