EchoStar To Divest DISH DBS Business To DIRECTV

(RTTNews) - EchoStar Corp. (SATS) and DIRECTV Monday announced a definitive agreement, by which DIRECTV will acquire EchoStar's video distribution business DISH DBS, including DISH TV and Sling TV, for a nominal price of $1, plus the assumption of DISH DBS's net debt.

The deal is projected to reduce EchoStar's total consolidated debt by $11.7 billion, and decrease its refinancing needs by approximately $6.7 billion through 2026.

This acquisition is expected to relieve significant financial pressures on EchoStar, enabling the company 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 transaction is expected to close in the fourth quarter of 2025.