DirecTV has finalized a deal to merge with Dish Network, marking a significant shift in the pay-TV landscape. This would allow AT&T Inc. (NYSE:T) to walk out of DirecTV.

DirecTV CEO Bill Morrow stated that the merger will enable the new entity to negotiate better programming packages and offer an enhanced viewer experience. The deal involves DirecTV acquiring Dish DBS, which includes Dish and Sling TV, for $1 and assuming $9.75 billion of Dish’s debt.

For the merger to proceed, Dish DBS debtholders must agree to a $1.57 billion reduction in debt. EchoStar, co-founded by Charlie Ergen, will receive $2.5 billion in financing from TPG‘s credit unit Angelo Gordon and DirecTV to help pay off Dish’s $2 billion bond due in November.

AT&T is selling its 70% stake in DirecTV to TPG for $7.6 billion, marking its exit from the pay-TV business. AT&T had previously signed a joint venture with TPG in 2021, valuing DirecTV at about $16 billion.

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The merger is expected to close in the fourth quarter of 2025, pending regulatory approvals. Investment banks PJT Partners, Barclays, JPMorgan, Bank of America, Evercore, LionTree, and Morgan Stanley advised on the deal.

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Image via DirecTV

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari