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DirecTV and Dish Network have been down the merger road before, multiple times.
In every past instance, potential antitrust issues have torpedoed the deal. Now, with DirecTV once again its own entity having been spun off from AT&T, both companies are reportedly trying again to complete a move that Dish Network chief Charlie Ergen once described as “inevitable.”
Could the satellite television companies find an unlikely ally in the Department of Justice?
That’s according to this report from Lydia Moynihan and Josh Kosman in the New York Post:
More: https://awfulannouncing.com/directv...ng-merger-can-they-beat-antitrust-issues.html
In every past instance, potential antitrust issues have torpedoed the deal. Now, with DirecTV once again its own entity having been spun off from AT&T, both companies are reportedly trying again to complete a move that Dish Network chief Charlie Ergen once described as “inevitable.”
Could the satellite television companies find an unlikely ally in the Department of Justice?
That’s according to this report from Lydia Moynihan and Josh Kosman in the New York Post:
DirecTV and Dish Network are in fresh talks to merge after years of on-again, off-again wrangling and multiple clampdowns from federal antitrust officials, The Post has learned.
The satellite-TV giants attempted a merger nearly two decades ago but the Federal Communications Commission and the Justice Department’s antitrust division stopped it. Two years ago, the DOJ also quietly warned executives off a prospective deal, concerned about the nascent rollout of 5G, sources said.
Now, however, insiders are optimistic a Dish-DirecTV deal could pass regulatory muster as concerns about the market power of the struggling companies have waned, sources said. Some executives likewise argue that a merger could give a surprise boost to the US’s troubled rollout of 5G wireless services.
Considering the recent aggressive antitrust stance taken by the federal government, it might seem like the current environment is the worst possible time for the two companies to finally try and make this happen. Ironically, though, things have gotten bad enough in terms of subscriber losses for both services that any potential deal might actually receive support from the government rather than roadblocks. Combined with recent legislation that should improve rural broadband access in the United States, this could be the right time for both companies to try.Now, however, insiders are optimistic a Dish-DirecTV deal could pass regulatory muster as concerns about the market power of the struggling companies have waned, sources said. Some executives likewise argue that a merger could give a surprise boost to the US’s troubled rollout of 5G wireless services.
DirecTV currently has just over 15 million customers, down from more than 25 million subscribers in 2017, according to company filings. Dish has 8.4 million subscribers, down from more than 13 million.
More: https://awfulannouncing.com/directv...ng-merger-can-they-beat-antitrust-issues.html
