DirecTV acquires the video distribution arm of EchoStar (Dish TV, Sling TV)

The video distribution business of EchoStar, which includes satellite service companies such as Dish TV or approaches to the streaming market such as Sling TV, has been acquired by DirecTV through a debt exchange transaction.

In the words of DirectTV, the combined forces of both companies could benefit US video consumers by forming a “stronger” unit within a video sector “dominated” by streaming services owned by large technology companies and programmers. In parallel, this acquisition will allow the deployment of the wireless network 5G Open RAN powered by EchoStar multiply your reach throughout the United States.

Under the terms of the purchase agreement, DirecTV will acquire the video distribution business of EchoStar, including Dish TV y Sling TV, in exchange for a nominal consideration of $1 plus the assumption of Dish DBS's net debt. Dish Network will also benefit from the release of a substantial amount of intercompany credits, including spectrum, but will have contractually limited access to the cash flow generated by its business between signing and closing.

After the closing of this operation, DirecTV It will be led by a management team that will reflect the strengths and capabilities of both organizations, although its current CEO will remain at the helm. Bill Morrow and the financial director Ray Carpenter. The combined company will be headquartered in El Segundo, California.

Morrow believes that this acquisition will realize the company's vision of the “future of television”, which is to “aggregate, curate and distribute content tailored to customer interests, and be better positioned to realize operational efficiencies while creating value for customers through additional investments.” Hamid Akhavan, until now president and CEO of EchoStar, notes that the agreement “serves the interests of EchoStar customers, shareholders, bondholders, employees and partners,” as well as “will provide American wireless consumers with more choices and help drive innovation at a faster pace.”

Apart from this operation, it has been announced that TPG y AT&T han llegado a un acuerdo definitivo en virtud del cual TPG adquirirá a AT&T el 70% remaining de DirecTV que aún no posee. TPG invertirá en DirecTV a través de TPG Capital, la plataforma de capital riesgo de la empresa en Estados Unidos y Europa. Se espera que la transacción entre TPG y AT&T se cierre en la segunda mitad de 2025, sujeta a las condiciones de cierre habituales.