By Anirban Sen
(Reuters) – Telecom operator AT&T (NYSE:) and its joint venture partner TPG are in early talks to merge their DirecTV satellite TV service with EchoStar-owned Dish, a person familiar with the matter told Reuters on Friday .
The two companies first tried to merge in 2002, when the US Department of Justice blocked the partnership. If the talks are successful, the combined entity would create the largest pay-TV service provider in the U.S. with approximately 16 million subscribers. The potential deal would likely draw the attention of antitrust authorities again, although this time it could potentially clear regulatory hurdles as the industry has expanded significantly since then and DirecTV and Dish now compete with the likes of Comcast (NASDAQ:), Charter, Amazon ( NASDAQ:). ) Prime, YouTube TV and Netflix (NASDAQ:). A merger would increase the combined company’s ability to negotiate with programmers, much like DirecTV is now doing with Disney as the two sides are embroiled in a carriage dispute.
For Dish, the deal would allow them to focus all their investments on building out their 5G wireless network.
“Rumors of a possible transaction involving DirecTV and Dish are nothing new, but we do not comment on rumors and speculation,” a DirecTV spokesperson said in an emailed statement to Reuters.
DirecTV and Dish have had off-and-on talks over the years since their first merger attempt was blocked in 2002.
EchoStar completed its acquisition of Dish in late 2023.
Dish did not immediately respond to Reuters requests for comment outside business hours. TPG and AT&T declined to comment.
DirecTV is facing a public battle with Disney that has resulted in 11 million DirecTV customers losing access to ESPN in the middle of the US Open tennis tournament.
The dispute comes against the backdrop of a competing plan by Disney, Fox and Warner Bros Discovery (NASDAQ:) to launch a streaming video joint venture dedicated to sports called Venu Sports.
The launch was temporarily blocked by a court order as part of a lawsuit filed by rival FuboTV (NYSE:), accusing the media companies of anticompetitive behavior.
Bloomberg reported on the talks between Dish and DirecTV earlier on Friday.
