The news: DirecTV will acquire satellite TV rivals Dish Network and Sling TV from EchoStar in a deal including the assumption of nearly $10 billion in debt, creating the largest pay TV provider in the US.
The deal involves a complicated financial rearrangement. AT&T is selling its 70% stake in DirecTV to private equity firm TPG, giving it 100% ownership of the satellite provider.
The merger arrives at a fortuitous time for EchoStar, which could have faced bankruptcy due to a looming $2 billion debt payment in November that it did not have the means to pay. DirecTV and TPG took on all of Dish Network’s debt as part of the deal and will “fully refinance” the company to the tune of $2.5 billion.
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