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Thread: AT&T, Dish Are Open to Merging Satellite-TV Divisions

  1. #1

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    AT&T, Dish Are Open to Merging Satellite-TV Divisions

    https://www.bloomberg.com/news/artic...e-tv-divisions

    Note this is in discussions as of this posting and they cite declining subscribers.

    AT&T Inc.’s DirecTV and Dish Network Corp., suffering the steepest subscriber losses in the pay-TV industry, are open to a merger and both companies believe such a deal could pass muster with U.S. regulators, according to people familiar with their thinking.

    It’s been 17 years since a proposed combination of the two satellite-TV services was deemed bad for consumers and shot down by the Federal Communications Commission and the Justice Department. But today -- with at least seven competing cable-like packages offered online and the continued growth of streaming services like Netflix and Amazon Prime -- pay-TV subscribers are switching at increasing rates. DirecTV and Dish together lost almost 2.75 million subscribers in the past year.

    Vanishing Subscribers

    “Both companies are seeing substantial declines in customers and when that happens, you see management teams start making plans,” said John Hodulik, an analyst with UBS. “As we’ve seen in this industry, it has usually led to consolidation.” Hodulik wrote a research note Thursday outlining the benefits of a such a merger.

    Representatives for Dish and AT&T declined to comment. The two companies have no active deal talks going on, according to the people, who asked not to be identified discussing internal matters. In a second merger try in 2014, Dish Chairman Charlie Ergen approached DirecTV. But AT&T swooped in weeks later and agreed to buy DirecTV for $48.5 billion.

    Dish rose as much as 6.3% to $38.47, the biggest intraday increase since January, after Bloomberg reported the companies would consider combining their satellite-TV operations. AT&T gained 1%.

  2. #2
    "...open to a merger and both companies believe such a deal could pass muster with U.S. regulators"

    Will be interesting to see if it actually could. Mr. Trump has made no bones about the fact recently that AT&T is on his (excrement) list.

  3. #3
    Quote Originally Posted by FreddyE1977 View Post

    Mr. Trump has made no bones about the fact recently that AT&T is on his (excrement) list.
    And the judges made their feelings known. The AG has already testified in the Time Warner case that he felt the government's case was fake.

    If the government challenges again, I'd expect to see Barr called as a witness.

  4. #4
    If Dish and DTV merge I can see AT&T selling their share. No way the DOJ/SEC allows AT&T to own both DTV and Dish.

  5. #5
    Quote Originally Posted by Don CT View Post
    If Dish and DTV merge I can see AT&T selling their share. No way the DOJ/SEC allows AT&T to own both DTV and Dish.
    I doubt very much that AT&T wants to buy Dish. They've owned DirecTV for 5 years and watched it decline. This follows the collapse of U-Verse. So those were two bad investments, two mis-reads of the marketplace. I can't imagine them wanting to dig their grave even deeper. Time to cut your losses.

  6. #6
    Quote Originally Posted by TheBigA View Post
    I doubt very much that AT&T wants to buy Dish. They've owned DirecTV for 5 years and watched it decline. This follows the collapse of U-Verse. So those were two bad investments, two mis-reads of the marketplace. I can't imagine them wanting to dig their grave even deeper.
    Will AT&T ever admit they made a mistake in buying DTV. Can they tuck their tail between their legs or will they stand strong and keep swallowing the losses.

  7. #7
    Quote Originally Posted by Don CT View Post
    Will AT&T ever admit they made a mistake in buying DTV. Can they tuck their tail between their legs or will they stand strong and keep swallowing the losses.
    They don't have to admit anything...Dish seems to be making the first move here.

  8. #8
    Quote Originally Posted by TheBigA View Post
    They don't have to admit anything...Dish seems to be making the first move here.
    Not the first time Dish has sniffed around at DTV.

  9. #9
    But if Dish keeps their tactics of constant contract disputes I'll still never consider them. I was considering DirecTV Now or the new streaming option but it looks more like AT&T is looking for a way to bail out.

  10. #10
    If Dish takes over DirecTV, I'll cancel immediately, contract or no contract.
    We have to save the Earth! It's the only planet with football and beer.

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