News: 0175162047

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DirecTV To Buy Rival Dish Network (variety.com)

(Monday September 30, 2024 @05:20PM (msmash) from the more-consolidation dept.)


DirecTV has [1]agreed to acquire struggling rival Dish Network , creating a satellite TV behemoth with nearly 20 million subscribers. The complex transaction, announced Monday, involves private equity firm TPG acquiring a majority stake in DirecTV from AT&T for $7.6 billion. DirecTV will then purchase Dish for $1 and assume its debt.

The deal provides a lifeline for Dish, which faces $2 billion in debt due November with only $500 million in available cash. EchoStar, Dish's parent company, will retain its wireless spectrum investments and operate independently. Subject to regulatory approval and creditor agreement, the merger is expected to close in late 2025. DirecTV and TPG will provide $2.5 billion to cover Dish's immediate financial needs. The deal's fate remains uncertain, as a similar 2002 merger attempt was blocked on antitrust grounds.



[1] https://variety.com/2024/tv/news/directv-acquires-dish-merger-1236159244/



two doomed companies merging (Score:2)

by davebarnes ( 158106 )

Is there any place left in the market for these two?

Probably not.

Rural areas and Sling TV (Score:5, Informative)

by tepples ( 727027 )

As I understand it, the place in the market for home satellite television providers is customers in more remote, rural places out of the service area of cable or fiber. These customers end up stuck on wireless Internet, be it satellite or cellular, with a prohibitive monthly data transfer quota that rules out using

Not to mention that the acquisition would include Dish's Sling TV, an Internet-delivered multichannel pay TV service used by many as a replacement for cable or satellite TV.

Re: (Score:2)

by RogueWarrior65 ( 678876 )

Starlink makes satellite TV obsolete. DirecTV is already pushing its streaming-only service. One can only hope that all of the 30+ shopping and infomercial channels will disappear in the process.

Re: Rural areas and Sling TV (Score:2)

by paul_engr ( 6280294 )

Starlink ain't gonna be ahit for streaming once they start jacking up the data rates

Re: Rural areas and Sling TV (Score:2)

by paul_engr ( 6280294 )

Rates as in fees, not speeds. They're inversely proportional, a lot of people will rudely discover

Re: Rural areas and Sling TV (Score:3)

by tysonedwards ( 969693 )

Broadcasting a single, simultaneous signal is way easier than giving everyone their own unique stream. Even if all of Hetflix, Hulu, Max, Disney, and the rest literally colocated data centers on Starlinks network, that is a massive amount of bandwidth to contend with, wirelessly on such limited frequency spectrum.

Re: (Score:2)

by Powercntrl ( 458442 )

> Starlink makes satellite TV obsolete.

Basically this. My retired father lives up in BFE and he cancelled DirecTV the moment he discovered Netflix works just fine over Starlink. Just because someone lives in the middle of bumfuck nowhere doesn't mean they're somehow going to be okay with going back to crappy linear TV.

Re: (Score:2)

by EvilSS ( 557649 )

> These customers end up stuck on wireless Internet, be it satellite or cellular, with a prohibitive monthly data transfer quota that rules out using

Starlink has a soft 1TB cap, where they lower your priority. Depending on how many people are in your "cell" that may or may not make a difference to you. TMobile 5G home internet bumps you down 1 QoS level at 1TB, but again unless your tower is completely congested you wouldn't even notice it (I've shot past that cap many times and noticed no speed differences). AT&T Air currently has no soft caps.

> Not to mention that the acquisition would include Dish's Sling TV, an Internet-delivered multichannel pay TV service used by many as a replacement for cable or satellite TV.

Dish also has an OTT service. If they manage Sling like they have their own I suspect it will end up losi

Re: (Score:2)

by Darinbob ( 1142669 )

Its also cheaper than cable. And even with faults, service is miles higher than most cable companies.

Dish Network, Charlie Ergen, Terrible History (Score:3, Informative)

by Seven Spirals ( 4924941 )

Dish Network has a long history with Charlie Ergen doing his best to make it the worst place in America to work. They've [1]Won "awards" [yahoo.com] for being such a shithole. I used to steal their e employees left and right quite easily. They were just down the street and I had folks onsite telling me when they hired anyone new and I'd easily pull them after they'd had a taste of Charlie's "rules".

Dish Network deserves to reap what it planted and go out of business. Something tells me there is going to be a lot of celebration when Charlie Ergan gets shown the door. Of course that probably also means they are going to lose a few of the security contractors they had at Dish to keep people from murdering Charlie (think I'm joking? He sat behind doors with armed guards at the office).

[1] https://finance.yahoo.com/news/dish-network-meanest-company-america-194008712.html

Re: (Score:3)

by LazarusQLong ( 5486838 )

naw, you know how these things work, he will either get a cushy golden parachute or he will be offered a high paying job at DirecTV, with guarantees of so many years of employment or soooooo much in severance if he leaves/is let go.

Re: (Score:2)

by Seven Spirals ( 4924941 )

They'd better let him keep the guards and the hardened office space if he stays. Based on the coders and systems folks I took from them, he'd likely end up dead in the parking lot without some serious security.

Re: (Score:2)

by LazarusQLong ( 5486838 )

Well, you know, his death will obviously be a suicide, him shooting himself in the head 3 or 4 times...

Re: (Score:2)

by Malay2bowman ( 10422660 )

I wonder how much that power and prestige is worth when he needs to have armed guards watching his back 24/7. In a way, he created his own prison.

Re: (Score:2)

by Malay2bowman ( 10422660 )

Life is not a Disney movie. The bad guys often win.

Re: (Score:2)

by Malay2bowman ( 10422660 )

"Charlie (think I'm joking? He sat behind doors with armed guards at the office)." Because he was afraid that the workers he mistreated might come back, armed to do you know what. So he basically left his other employees to take the bullet for what he did. Evil indeed.

Satellite TV behemoth my Ass (Score:2)

by williamyf ( 227051 )

Is true that merging both companies lowers satellite launch and maintenance costs, and provides leverage vis-a-vis content proviers.

But the meat and potatoes of the merger is 5G. Due to financial (dis)stress, Dish was not able to deploy their 5G-NR-NC (i.e. Full 5G no bullshit) network fast enough. And, lets face it, in the long run, 5G and 6G will bring in more money, and allow interactivity with SatTV which currently both DTV and Dish sorely lack...

The Added financial resources + Savings + efficencies/sin

Re: Satellite TV behemoth my Ass (Score:1)

by blue trane ( 110704 )

Did you just use a lot of words to say prices for consumers are going to go up?

Re: (Score:3)

by sjames ( 1099 )

EchoStar will be keeping the 5G spectrum in the deal.

Re: (Score:2)

by jacks smirking reven ( 909048 )

Thank you, was curious about that, quick search shows this article already talking like this is the move for the 5G network to get moving.

[1]DirecTV's buyout is lifeline For Dish and Echostar's US 5G network [fierce-network.com]

Hopefully this deal does take place (it makes zero sense to have "competition" in the satellite TV space, just have one company and regulate it a bit) but its

approval should be dependant on a set of goals for EchoStar on the 5G deployment over the next few years or they are forced to surrender the spectrum

[1] https://www.fierce-network.com/wireless/directvs-1-satellite-tv-buyout-could-save-dishs-5g-bacon

Funny thing (Score:3)

by sjames ( 1099 )

Just a year ago DirecTV was rending garments saying they just HAD to hike prices again and again to stay solvent, now they're taking on a bunch of debt.

I ditched them and now pay a little under 1/3rd as much per month for streaming.

Even when I told the retention person the exact monthly they would have to beat to keep me as a customer, they didn't even get close.

So now DirecTV has more debt and a slightly larger pool of customers preparing to jump ship.

Directv is giving up on satellites (Score:3)

by MpVpRb ( 1423381 )

I read a news article a while ago that they stopped launching new satellites, even cancelling a launch that was planned

If you go to the DTV site, it features their internet streaming service, with satellite far less prominent, labelled "legacy"

People left years ago (Score:2)

by RitchCraft ( 6454710 )

I heard that a bunch of people left DirecTV years ago due to some glitch during a football game. :)

Oh, are they still doing this? Didn't know (Score:3)

by Rick Schumann ( 4662797 )

You mean there's still such a thing as 'satellite TV'? Would've thought that would've died out years ago, when people started cancelling cable TV.

Why would anyone even pay for this in 2024?

Of course, the story is (Score:2)

by Tony Isaac ( 1301187 )

They're doing this to provide better customer service and lower cost. Don't they all say that? Somehow, it never works out that way.

If Machiavelli were a hacker, he'd have worked for the CSSG.
-- Phil Lapsley