Dish and DirecTV in merger talks

31 March 2014 | Sophie Donoghue


Dish Network is reportedly in talks with DirecTV – the largest satellite TV operator in the US – regarding a possible merger between the two companies.

Negotiations have not yet been made official, due to fears that regulators may block the deal on competition grounds, according to sources.

Merger talks were said to be prompted by US conglomerate Comcast’s $45 billion take-over of Time Warner Cable (TWC), which was announced in February this year.

Comcast has said it plans to submit the application for its proposed acquisition of TWC to telecoms regulator the Federal Communications Commission (FCC) by the end of March.

Dish has in the past signalled interest in merging with DirecTV, arguing that combined the two companies would create significant value.

Market watchers have predicted that the satellite industry will see a rise in consolidation in the future, arguing that those operators which do not strike partnerships will be left behind.

Since the news broke, shares in both companies have risen substantially.