Sept 13 (Askume) – Telecom operator AT& T (TN) and its joint venture partner TPG (TPG.O) are in early talks to merge their DirecTV satellite television service with EchoStar ‘s (SATS.O) Dish Array.
The two companies first tried to merge in 2002, but the US Justice Department blocked the alliance at that time. If the talks are successful, the combined entity will become the largest pay-TV provider in the United States with about 16 million subscribers.
The potential deal could again face antitrust scrutiny, though this time it may be able to clear regulatory hurdles as the industry has expanded significantly since then and DirecTV and Dish are now owned by Comcast (CMCSA.O) , Charter (CHTR.O ) , and others .
The merger would improve the combined company’s ability to negotiate with show producers, as DirecTV currently does with Disney (DIS.N) as the two sides are embroiled in a carriage dispute.
For Dish, the deal will allow them to focus all of their investments on building out 5G wireless networks.
“Rumors about a potential deal between DirecTV and Dish are nothing new, but we do not comment on rumors and speculation,” a DirecTV spokesperson said in an emailed statement to Askume.
DirecTV and Dish have been in talks for several years since their first merger attempt was blocked in 2002.
EchoStar completes its acquisition of Dish in late 2023.
Dish did not immediately respond to a Askume request for comment outside business hours. TPG and AT&T also declined to comment.
DirecTV isFacing a public battle with Disney (DIS.N) , 11 million DirecTV customers were unable to access ESPN during the U.S. Open.
The dispute comes amid competing plans by Disney, Fox (FOXA.O) and Warner Bros Discovery Channel (WBD.O) to form a sports-focused streaming video joint venture called Venu Sports.
The show’s broadcast was temporarily halted under a court injunction as part of a lawsuit by sports streaming rival fuboTV accusing the media company of anti-competitive conduct .
Bloomberg reported on talks between Dish and DirecTV on Friday.
