EchoStar (NASDAQ: SATS) has agreed to sell to DirecTV for a nominal $1, DISH DBS, its struggling satellite video distribution division, which includes DISH TV and Sling TV as part of a series of transactions designed to pay off some of its debt and further invest in its 5G network. As part of the transaction, DirecTV will assume $9.75 billion of DISH DBS’s net debt. That’s around $1.57 billion short of DISH DBS’s overall net debt, giving debtholders less than they are owed. The deal is expected to close in Q4 2025.
EchoStar stated the sale of its video business combined with $2.5 billion in new financing from investment company TPG Angelo Gordon will provide the cash needed to pay off about $2 billion in debt maturity by November and “provide interim liquidity.”
The proposed deal is projected to cut EchoStar’s total consolidated debt by $11.7 billion and decrease its refinancing needs by approximately $6.7 billion through 2026. In addition, EchoStar will issue $5.1 billion of new senior secured notes maturing in 2029 from existing stakeholders to build out its Boost Mobile nationwide 5G Open RAN network.
“Today’s strategic actions will advance our ability to aggressively compete in the U.S. wireless market,” stated Hamid Akhavan, EchoStar president and CEO.
In a separate deal, AT&T (NYSE: T) said it is selling its 70 percent stake in DirecTV to TPG Capital for roughly $7.6 billion in cash. TPG Capital currently owns the remaining 30 percent. That transaction is set to close by the second half of 2025.
AT&T stated the sale allows it “to focus on being the leading wireless 5G and fiber connectivity company in America.”
By John Celentano, Inside Towers Business Editor
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