US satellite TV giants DIRECTV and DISH Network are engaged in fresh merger talks, after years of on-off negotiations and government interventions. According to the New York Post, talks between the companies are being driven by private equity firm TPG Capital.
Back in August 2021 TPG and AT&T closed a transaction establishing a new company named ‘DIRECTV’. This new business owns and operates the DirecTV, AT&T TV and U-verse video services previously owned and operated by AT&T. TPG holds a 30% stake in the new entity, which is valued at USD16.25 billion.
As per the report, DirecTV and DISH first attempted a merger nearly two decades ago, but the Federal Communications Commission (FCC) and the Department of Justice’s (DoJ’s) antitrust division halted it. As recently as two years ago, the DoJ quietly warned executives off a prospective deal.
TPG is said to be keen to recoup its investment by generating synergies, while DISH needs extra funds to support its ongoing 5G network rollout.