A $23 billion spectrum sale from EchoStar to AT&T has revived speculation about a potential merger between satellite TV giants DirecTV and DISH Network, which could reshape the pay-TV industry amid ongoing cord-cutting trends. The deal provides DISH with liquidity and may facilitate a long-shelved merger, offering synergies and cost savings, though regulatory approval remains uncertain. The move signals a strategic recalibration for EchoStar, which is diversifying into broadband satellite services while navigating financial challenges.
Dish has given up on becoming the fourth major wireless carrier in the US, selling its spectrum licenses to AT&T and shifting Boost Mobile to operate primarily on AT&T’s network, marking the end of its efforts to build a standalone 5G network and effectively ending its pursuit of becoming a major carrier.
DirecTV has terminated its acquisition of satellite TV rival Dish due to Dish bondholders rejecting a debt exchange proposal, which was crucial for the merger. The deal, initially announced in September, aimed to consolidate the shrinking pay TV market by combining DirecTV and Dish's 20 million subscribers. DirecTV CEO Bill Morrow cited the need to protect the company's balance sheet and operational flexibility as reasons for the termination. This marks the second failed merger attempt between the two companies, following a blocked deal in 2002.
Shares of Verizon Communications Inc. dropped to a 12-year low after Bloomberg reported that Amazon.com Inc. was in talks with the company and other wireless carriers about offering services, possibly for free, to Prime members. Amazon has been negotiating with Verizon, T-Mobile, Dish, and AT&T for the past six to eight weeks to get the lowest wholesale prices, allowing Amazon to offer its Prime subscribers wireless plans for $10 a month or possibly free. Verizon, AT&T, and T-Mobile shares ranked 1-2-3 on the list of the S&P 500 index’s biggest decliners Friday, while Dish’s stock soared 17.2% to pace the S&P 500’s gainers.
Dish is reportedly in talks with Amazon to sell wireless plans through the e-commerce giant's website. The partnership would allow Amazon to offer its customers another service while giving Dish access to Amazon's vast customer base. The talks are still in the early stages and no deal has been reached yet.
Regional banks, including PacWest Bancorp, rallied while Dish Network's stock slid 5%. Berkshire Hathaway's first-quarter profit surged, boosting its stock. Other stocks on the move early Monday include AMC and Tyson.
