:max_bytes(150000):strip_icc()/GettyImages-1571908768-792155e48a934a8cb86d65c704233b7d.jpg "EchoStar Stock Soars on Report Dish Close To Merging With DirecTV")
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Key Takeaways
- DirecTV, owned by AT&T and private-equity firm TPG, and EchoStar’s Dish reportedly are in advanced talks to merge.
- The Wall Street Journal said a deal for DirecTV to buy Dish could come as early as Monday.
- The paper noted that the two satellite-TV providers have been trying to come together for decades.
Shares of EchoStar (SATS) soared Friday on a report that its Dish is in advanced talks to be acquired by satellite-TV rival DirecTV.
The Wall Street Journal reported that the plan for DirecTV—owned by AT&T (T) and private-equity firm TPG—to purchase Dish could be announced on Monday. The combination, which has been discussed for decades, would create one of the largest pay-TV distributors in the U.S.
The paper noted that both DirecTV and Dish have been losing money on falling subscriptions as consumers switch to streaming services. It explained that putting the two together would be a big cost-saver for DirecTV, and help Dish make upcoming debt payments.
Neither DirecTV nor Dish immediately responded to an Investopedia request for comment.
The news sent EchoStar shares surging 11% Friday afternoon to their highest level in almost three years. AT&T shares, which advanced 1%, have gained about 30% this year.
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