Private Equity Group Looking to Acquire DirecTV and Dish Network

Private equity firm Apollo Global Management is reportedly negotiating to acquire AT&T’s satellite TV service, DirecTV, along with competitor Dish Network.

The complicated transaction would enable AT&T to offload about $20 billion in debt, while maintaining control of the satellite service. It would also allow Dish Network CEO Charlie Ergen to unload the company’s declining pay-TV business, according to Fox Business, which first reported the story based on information from sources familiar with the situation.

Ergen, who has recently moved the company’s focus toward wireless networks and 5G, has made no secret his desire to combine the two satellite businesses.

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AT&T, which acquired DirecTV in 2015 for $49 billion, also purchased Time Warner for $85 billion, sending its debt load into the stratosphere.

Apollo, which has about $250 billion in its asset portfolio, would provide financing for the deal in exchange for a minority stake in the combined entity. The firm specializes in leveraged buyout transactions and purchases of distressed securities involving corporate restructuring, special situations, and industry consolidations.  Its holdings include Caesars Entertainment Corporation, CareerBuilder,  ADT and Rackspace.

AT&T told Fox it has received the offer but that there were no active discussions at this time.

COO John Stankey, who is also CEO of WarnerMedia, last month reiterated AT&T’s support DirecTV and over-the-top video unit, AT&T TV Now.

“We’re constantly looking at the [business] portfolio,” Stankey told The Wall Street Journal. “That’s the normal course of business and it’s not unique to DirecTV.”

 

6 thoughts on “Private Equity Group Looking to Acquire DirecTV and Dish Network”

  1. ATT are a bunch of crooks. They acquire DirecTV and change everything and increase costs for the consumer with no regrets. Trying to monopolize the market by acquiring Dish would severely diminish the product and hurt the consumer. I would love if everyone was to boycott DirecTV /ATT by cancelling their services, then they would realize what’s most important. Consumers. Yes we would have cancellation fees but screw it l, it would be worth every penny to see them go under.

  2. I am a Dish Network subscriber and I certainly hope the monthly costs will not go up. Being retired and Dish Network is the only TV service we have, I would certainly hope they would consider this, when looking at changes.

  3. Yea all the debt At&t is in because of these terrible Decisions these top executives are firing over 3000 employees in the finance department because they are merging with another company so they don’t have to pay for the salaries

  4. I am an AT&T customer as well as a Directv customer.
    I can’t wait to drop them both. They have poor customer support and are much more expensive than they need to be.
    I called Dtv today and was happy when the said I could go ala cart until they wanted to start at a lower package. The upshot was it would be more expensive.
    I also am having a problem with a genie. No warranty, and vista by tech while cost $99.95. Had to pop for protection program. 8.99/mth.

  5. Would not this merger create a monopoly, hurting consumers? Isn’t Congress suppose to approve,disapprove mergers and aquisions of this type to protect us from monopolies? Oh that’s right they are too busy with their own self serving agenda to impeach the president to be bothered doing what they were put into office to do, work for us! How many Of them have an interest in seeing this merger happen?

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