DirecTV and Dish are in advanced talks for a merger that could create the largest pay-TV provider in the U.S. with more than 20 million subscribers, according to multiple reports.
The deal could be announced as early as Monday, The Wall Street Journal reported. reported Thursday evening. This will also include Dish's streaming TV brand, Sling TV.
Both satellite TV companies continue to attract more customers to streaming services, which are cheaper and easier to cancel.
The proposed agreement would give DirecTV parent AT&T and private equity firm TPG the means to significantly reduce costs. For Dish, Charlie Ergen, co-founder of parent company Echostar, will provide a lifeline from the debt crisis. reported by bloomberg.
The two companies have previously proposed a merger and have held several discussions over the past 20 years. In 2001, Ergen attempted to merge two satellite television networks, but was blocked by regulators.
A former poker player, Ergen's bold negotiating tactics have complicated other efforts, including recent negotiations for 2022.
It remains to be seen whether federal regulators will once again deem the pay-TV landscape as competitive as ever and block the proposed deal, or whether the rise of streaming has darkened the future of satellite TV. It is unclear whether
Regulatory hurdles. Denver Post via Getty Images
In 2015, the pay-TV industry, which includes cable and satellite TV, had 104 million U.S. subscribers, according to data compiled by Bloomberg Intelligence.
Thanks to code reduction and the dramatic growth of streaming services like Netflix and Amazon Prime, that number has dropped to less than 70 million this year.
DirecTV also took a hit recently, losing its Sunday Ticket package to YouTube TV.
