AT&T Sells DirecTV Just as Dish Network and DirecTV Announce Merger

AT&T is cutting the cord on DirecTV, selling its remaining stake for $7.6 billion to equity firm TPG Partners. The deal comes on the heels of a potential merger of DirectTV and Dish Network.

Ten years ago, AT&T bought DirecTV for $48.5 billion. The timing, however, was not the best for the communications giant. As streaming services like Netflix and Max pulled more subscribers in, fewer and fewer were paying for traditional cable and satellite TV. After millions of customers canceled DirecTV subscriptions, AT&T sold off 30% of the satellite service to TPG in 2021.

When announcing the sale of the rest of its stake, AT&T wrote, “This sale allows AT&T to continue to focus on being the leading wireless 5G and fiber connectivity company in America. This transaction also continues to strengthen AT&T’s balance sheet by pulling forward cash expected over the next several years.”

The deal is likely to finalize toward the end of next year. However, if the agreement falls through before Oct. 31, 2025, either party can back out.

Is DirecTV Buying Dish Network?

Outside of AT&T, DirecTV is making some moves of its own. After years of discussion, DirectTV is buying rival Dish Network, currently owned by EchoStar, for $1. However, DirecTV will take on billions of dollars’ worth of debt in the deal.

Even though DirecTV is scooping up the satellite service, the Dish brand will remain, at least for now. According to CNN, there’s no plan in place to change the name or service, meaning customers will still remain under the Dish umbrella.

The deal will provide a financial lifeline for Dish, as the company has been struggling with debt. As it stands, Dish has about $500 million in operating cash but owes creditors about $2 billion, which matures in late November. TPG and DirecTV have agreed to lend Dish $10 billion to get the debt paid by Nov. 24.

Combined, DirecTV and Dish Network have nearly 20 million subscribers. If the acquisition is approved by federal regulators, it will create the biggest pay-TV provider in the U.S.