Satellite TV provider Dish Network is reportedly considering a merger with AT&T’s DirecTV service. AT&T and Dish have no active deal talks ongoing, however, Reuters reported Friday, June 7.
The sides briefly flirted with the idea again in 2014, only for AT&T to preemptively strike by acquiring DirecTV. Now, though nothing is imminent, Dish Network has again reportedly approached AT&T and DirecTV about a potential merger, likely the result of consistent subscriber losses for both companies.
“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 in Bloomberg Thursday outlining the benefits of a such a merger.
Full Content: Bloomberg, Reuters
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