DirecTV to acquire EchoStar's video distribution business including Dish TV and Sling TV

Satellite-TV provider DirecTV said Monday it has agreed to acquire EchoStar's video distribution business, which includes Dish TV and Sling TV in a debt exchange transaction. The deal confirms recent media reports from the Wall Street Journal and others. Under the terms of the deal, DirecTV will pay a nominal $1 and assume Dish DBS' net debt of about $9.75 billion. The move "will benefit U.S. video consumers by creating a more robust competitive force in a video industry dominated by streaming services owned by large tech companies and programmers," the companies said in a joint statement. At close, EchoStar will have reduced its total consolidated debt by about $11.8 billion and will have reduced its refinancing needs through 2026 by about $6.7 billion. EchoStar's stock was up 1.7% premarket and has gained 69.2% in the year to date, while the S&P 500 has gained 20.3%.

-Ciara Linnane

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09-30-24 0715ET

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