Are the two largest satellite TV companies in the United States about to officially become one? After years of rumors and teasing, the possibility is looming ever larger. DIRECTV and DISH have been discussing a deal to merge on and off for more than 20 years now, but according to Bloomberg the two companies are close to completing a merger deal that would create the world’s largest pay-TV distributor.

Key Details:

• DIRECTV and DISH would have around 19 million customers if combined.
• The combined entity would be controlled by DIRECTV, which would assume responsibility for Sling TV.
• DISH’s efforts to pivot to broadband could pay dividends down the road for a merged company.

Bloomberg characterized the discussions between DIRECTV and DISH as “advanced talks,” and that the structure of the final entity is the last hurdle for the two sides to clear. DIRECTV is in line to control the combined company if a merger does go through, though, as always with deal discussions of this size, talks could still fall apart.

If DISH and DIRECTV do combine, it would create the biggest cable or satellite company on the market. At last report, DIRECTV had around 11 million customers, while DISH had around 8 million between its satellite and Sling TV customers. On the cable side of the pay-TV industry, Comcast and Charter Communications have between 13 million and 14 million subscribers apiece.

Talks between DIRECTV and DISH seemed to peter out in 2023, as the two had other problems to focus on — particularly DISH, which is trying to buy up enough spectrum and meet federal standards to become a broadband distributor. But earlier this month, it was reported that the two sides had resumed discussions on bringing their companies together.

How Would a Merger Help Both Companies?

On the DISH side of the equation, a deal would allow for it to hand off responsibilities for its TV customers to DIRECTV while it continues to try and build a successful internet business. As pay TV continues to lose customers in the coming years, having that broadband business to fall back on will be crucial for the new firm as a driver of consistent revenue.

For DIRECTV, a deal would mean not only control over DISH’s satellite customers but also over its live TV streaming service Sling TV. DIRECTV just wrapped up a bitter carriage fight with Disney, the final sticking point of which was DIRECTV’s insistence that it be allowed to sell smaller channel packages with fewer choices that would potentially help save customers money. While DIRECTV eventually won that fight, Sling TV would give it exactly what it was seeking from Disney; a smaller bundle of around 40 channels that costs $40 per month, half the price of the cheapest DIRECTV STREAM package.

A merger could get a hard look from federal regulators, but prevailing wisdom holds that the tottering state of the pay-TV industry and the rise of streaming may make it a bit easier to get the deal through. A deal could be announced as soon as the next few days, which would end an M&A conversation that has simmered on since the Justice Department blocked a combination of the two companies in 2002.