DirecTV will buy rival Dish TV from EchoStar, forging the largest U.S. pay-TV provider. Earlier Monday, AT&T agreed to sell its remaining 70% stake in DirecTV to private equity firm TPG for about $7.6 billion.
AT&T stock edged higher Monday while Echostar dived. TPG stock dipped.
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 rose 0.4% to 21.98 on Monday. The Dow Jones component hit a three-year high of 22.34 on Sept. 16.
EchoStar stock dived 11.5% to 24.82 after hitting its best levels since late 2021 on Friday.
TPG stock slipped 0.8% to 57.56.
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