Charlie Ergen-backed payTV operation DISH Network could be about to merge or consolidate with DirecTV, this according to journalist Chris Forrester's latest posting at the Advanced Television infosite.
Numerous reports suggest that with DirecTV hemorrhaging subscribers since its AT&T take-over, a disposal by AT&T with DISH Network being the favored target.
DirecTV has lost 2.5 million subs over the past year. Not helping are allegations that AT&T has artificially inflated its subs numbers and is subject to a Class Action from complainants. AT&T’s CEO John Stephens has said that DirecTV could lose around 350,000 subs this current Q3.
While DISH might seem a logical partner, it is also clear that Charlie Ergen is in the process of moving his business into 5G wireless. Nevertheless, a merger makes logical sense and would provide serious economies of scale for the two satellite players if they came together.