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DirecTV, owned by AT&T and private equity firm TPG, and Echostar’s Dish are reportedly in advanced talks to merge. The Wall Street Journal reported that a deal for DirecTV to buy Dish could be finalized as early as Monday. TV providers have been trying to come together for decades.
Shares of EchoStar (SATS) soared on Friday following reports that the company’s Dish is in talks to be acquired by satellite TV rival DirecTV.
The Wall Street Journal reported that plans for DirecTV, owned by AT&T (T) and private equity firm TPG, to buy Dish could be announced on Monday. The merger, which has been discussed for decades, would create one of the largest pay-TV distribution companies in the United States.
The paper noted that both DirecTV and Dish are losing money due to declining subscriptions as consumers switch to streaming services. Combining the two will result in significant cost savings for DirecTV and will help Dish pay off its future debt, he said.
Neither DirecTV nor Dish immediately responded to Investopedia’s requests for comment.
Echostar stock soared 11% Friday afternoon on the news, hitting its highest level in nearly three years. AT&T stock, which rose 1%, is up about 30% this year.
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