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DirecTV is buying rival Dish Network for $1 as part of a major shift for the satellite provider.
AT&T is also selling its majority stake in DirecTV to private equity firm TPG Partners for $7.6 billion, ending the communication giant’s remaining ties to the entertainment industry.
AT&T said Monday in a filing with the Securities and Exchange Commission that it will receive payments from TPG and DirecTV for its remaining 70 percent stake in the satellite TV company. This includes $1.7 billion in the second half of the year and $5.4 billion next year. The remaining amount will be paid in 2029.
AT&T said that the deal will allow it to focus on being a wireless 5G and fiber connectivity company and strengthen its balance sheet.
The transaction is expected to close in the second half of 2025.
But, for most consumers, they will care more about the other news of the company’s shift. That DirecTV has now aquired Dish Network for $1 - but also agreeing to take on the nearly $10 million in debt that Dish Network carried.
The deal also means that DirecTV will now own Sling TV.
The impact to consumers is still yet to be knowin in full details, but experts told Fox Business that DirecTV could now offer cheaper packages to consumers. The combined company will be able to negotiate better deals by offering competitive pricing.
DirecTV and the Dish merger comes as the two have been battling losing customers to streaming TV and cord cutters.
