DirecTV Strikes Deal to Acquire Dish Network

DirecTV said on Monday that it had reached an agreement to acquire Dish Network, a deal that would create a satellite TV giant with millions of customers and potentially provide a financial lifeline for Dish, which is struggling with billions of dollars in debt.The deal is a life raft for Dish, a fading purveyor of traditional television whose fortunes have waned along with the pay-TV industry.The company has roughly $2 billion in debt coming due in November, and about $500 million in available cash, putting the company at risk for bankruptcy.

In August, Dish told investors it would need additional capital, “which may not be available on favorable terms” to fund its obligations.The deal, which is subject to regulatory approval, is a multi-step transaction that involves the private equity giant TPG acquiring a majority stake in DirecTV from AT&T for $7.6 billion.DirecTV plans to buy Dish for just $1, but will also take on Dish’s debt.EchoStar, the parent company of Dish, will keep other parts of its business, including over $30 billion in wireless spectrum investments.

It would continue to operate as a stand-alone company.The deal would create one of the largest pay-TV providers in the United States.Dish has roughly 8.1 million subscribers, according to the analyst firm MoffettNathanson, and DirecTV has about 11 million U.S.

subscribers.Comcast, a cable heavyweight, has roughly 13.2 million video subscribers.Bill Morrow, the chief executive of DirecTV, said in a statement that the two companies would be “better able to work with programmers to realize our vision for the future of TV.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access.

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