Spectrum Sale Sparks Renewed Talk of DirecTV-DISH Merger

August 30, 2025 | New York

A landmark $23 billion spectrum sale announced today by AT&T and EchoStar has reignited discussion of a potential merger between satellite-TV rivals DirecTV and DISH Network.

Under the agreement, AT&T will acquire approximately 30 MHz of 3.45 GHz midband spectrum and 20 MHz of 600 MHz low-band spectrum from EchoStar. The all-cash transaction, expected to close in mid-2026 pending FCC approval, represents a strategic retreat by EchoStar from its ambitious wireless build-out plans and provides much-needed liquidity to the company.

Analysts immediately flagged the deal’s implications for consolidation in the shrinking pay-TV market. “A DirecTV merger could be revisited,” said TD Cowen analyst Gregory Williams, citing the opportunity for shared infrastructure savings and stronger negotiating power with content providers in an era dominated by streaming services.

EchoStar’s latest financial results highlight the pressures that prompted the spectrum divestiture: legacy pay-TV revenues fell 6% year-over-year to $3.725 billion in the June quarter, while the wireless segment-driven by Boost Mobile-added 212,000 subscribers, bringing its total to 1.55 million.

With private equity firm TPG completing its takeover of DirecTV last year, market watchers believe the spectrum sale now clears obstacles for renewed merger talks. A combined DirecTV-DISH entity would command over 20 million pay-TV subscribers and could leverage bundled offerings across satellite TV, streaming, and wireless services.

Regulatory hurdles remain, however, as the FCC’s review will scrutinize antitrust concerns given AT&T’s dominant position in wireless. Should approval be granted, shareholders of both companies could soon see a dramatic reshaping of America’s satellite-TV landscape.