AT&T, the parent company of DirectTV, and EchoStar, the owner of Dish, are in talks to merge the two satellite TV providers, according to a recent report by Bloomberg.
The idea of joining DirectTV and Dish into one entity is nothing new. The merger was initially proposed in 2002 before being blocked by U.S. regulators and was brought up on a number of other occasions in the past.
If DirectTV and Dish join forces, they will create the biggest satellite TV provider in the nation. It is estimated that this new entity would have more than 16 million subscribers.
Unlike in 2002, it is expected that U.S. regulators will look more favorably at the merger this time around. The biggest reason is that the satellite TV industry is on the decline due to emerging competition from streaming services.
It is important to note that the negotiations between AT&T and EchoStar about a potential deal are still in the early stages. According to sources familiar with the matter, the talks are not guaranteed to finish positively, and merger plans could still fall through at some point.
“Rumors about a potential transaction involving DirecTV and Dish are nothing new, but we don’t comment on rumors and speculation,” a spokesperson for DirecTV said in an e-mail statement provided to Bloomberg.