EchoStar Stock Hit On Deal To Sell Dish TV To DirecTV

RTTNews | 184 ngày trước
EchoStar Stock Hit On Deal To Sell Dish TV To DirecTV

(RTTNews) - Shares of EchoStar Corp. dropped around 12 percent on Monday's regular trading and more than 1 percent in the extended trading on the Nasdaq after the firm agreed to sell its video distribution business Dish TV and digital business Sling TV to rival DirecTV for a nominal price of $1, plus the assumption of DISH DBS's net debt.

The combination of DIRECTV and DISH would create the largest pay-TV provider, benefiting U.S. video consumers with more flexibility and better value in the highly competitive video industry, which is at present dominated by streaming services of large tech companies and programmers.

With the move, EchoStar expects to get greater financial flexibility, and to be able to focus on launching a nationwide 5G Open RAN wireless service to compete with major carriers. The deal will also strengthen EchoStar's Boost Mobile brand as the fourth major facilities-based carrier in the U.S. Additionally, EchoStar plans to leverage its satellite assets to develop innovative direct-to-device solutions.

The sale would reduce EchoStar's total consolidated debt by $11.7 billion, and decrease its refinancing needs by around $6.7 billion through 2026.

The combined DirecTV - DISH video company is expected to have increased scale to incentivize programmers to allow DirecTV to deliver smaller packages at lower price points.

EchoStar noted that combined, DirecTV and DISH have collectively lost 63 percent of their satellite customers since 2016. Traditional pay TV penetration in U.S. households is now less than 50 percent.

Bill Morrow, Chief Executive Officer, DirecTV, said, "DirecTV operates in a highly competitive video distribution industry. With greater scale, we expect a combined DirecTV and DISH will be better able to work with programmers to realize our vision for the future of TV, which is to aggregate, curate, and distribute content tailored to customers' interests, and to be better positioned to realize operating efficiencies while creating value for customers through additional investment."

DirecTV estimates that the combination has the potential to generate cost synergies of at least $1 billion per annum. These synergies are expected to be achieved by the third anniversary of closing, assuming the closing is in the fourth quarter of 2025.

In a relative deal, TPG Inc., which holds the minority interest in DirecTV, agreed to acquire from telecom major AT&T the remaining 70 percent stake in DirecTV that it does not already own. AT&T expects to receive approximately $7.6 billion in cash payments from DirecTV and the buyer through 2029. Completion of the deal is not contingent on DirecTV's acquisition of DISH.

On the Nasdaq, EchoStar closed Monday's trading at $24.82, down 11.5 percent. In the after hours trading, the shares fell 1.3 percent further.

read more
DIRECTV, Nexstar Reach Multi-Year Distribution Agreement

DIRECTV, Nexstar Reach Multi-Year Distribution Agreement

DIRECTV Group Inc.(DTV) and Nexstar Media Group, Inc. (NXST) on Monday have officially reached a comprehensive new multi-year distribution agreement covering 176 Nexstar-owned local television stations and the company's national cable news network, NewsNation. Terms of the agreements were not disclosed.
RTTNews | 563 ngày trước
DISH, EchoStar To Combine In All-stock Deal

DISH, EchoStar To Combine In All-stock Deal

DISH Network Corp. (DISH) and EchoStar Corp. (SATS) announced Tuesday they have entered into a definitive agreement for DISH to combine with EchoStar in an all-stock merger at a fixed exchange ratio.
RTTNews | 604 ngày trước
Asian Markets Track Wall Street Lower

Asian Markets Track Wall Street Lower

Asian stock markets are trading mostly lower on Friday, following the broadly negative from Wall Street overnight, with some of the major markets being closed, as traders continue to assess the impact of the steeper-than-expected reciprocal tariffs imposed by US President Donald Trump on U.S. trade partners. Asian markets ended mostly lower on Thursday.
RTTNews | 4h 4phút trước
Australian Market Extends Early Losses In Mid-market

Australian Market Extends Early Losses In Mid-market

The Australian stock market is extending its early losses in mid-market moves on Friday, adding to the losses in the previous session, following the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is falling almost 2 percent to stay just above the 7,700 level, with weakness across most sectors led by energy and technology stocks.
RTTNews | 4h 48phút trước
Sensex, Nifty Seen Lower At Open As Global Sell-off Deepens

Sensex, Nifty Seen Lower At Open As Global Sell-off Deepens

Indian shares may follow global peers lower on Friday, even as a weakening dollar, plunging oil prices and expectations for accelerated Federal Reserve interest-rate cuts may help cap overall losses to some extent.
RTTNews | 4h 55phút trước
Japanese Market Sharply Lower; Down 2.4%

Japanese Market Sharply Lower; Down 2.4%

Extending the sharp losses in the previous session, the Japanese market is sharply lower on Friday, following the broadly negative cues from Wall Street overnight. The Nikkei 225 is falling 2.4 percent to below the 33,900 level, with weakness across most sectors led by index heavyweights, financial and technology stocks.
RTTNews | 5h 59phút trước
Australian Market Sharply Lower

Australian Market Sharply Lower

The Australian stock market is trading sharply lower on Friday, extending the losses in the previous session, following the broadly negative cues from Wall Street overnight. The benchmark S&P/ASX 200 is falling well below the 7,800 level, with weakness across most sectors led by energy and technology stocks.
RTTNews | 6h 26phút trước
Thai Shares Tipped To Open Under Water Again On Friday

Thai Shares Tipped To Open Under Water Again On Friday

The Thai stock market on Thursday ended the two-day winning streak in which it had advanced almost 15 points or 1.2 percent. The Stock Exchange of Thailand now sits just above the 1,160-point plateau and it's looking at another soft start again on Friday.
RTTNews | 6h 27phút trước