Charlie Ergen-backed pay-TV operation DISH Network could be about to merge or consolidate with DirecTV.

Numerous reports suggest that with DirecTV haemorrhaging subscribers since its AT&T take-over, a disposal by AT&T with DISH Network being the favoured target.

DirecTV has lost 2.5 million subs over the past year. Not helping are allegations that AT&T has artificially inflated its subs numbers and is subject to a Class Action from complainants.  AT&T’s CEO John Stephens has said that DirecTV could lose around 350,000 subs this current Q3.

While DISH might seem a logical partner, it is also clear that Charlie Ergen is in the process of moving his business into 5G wireless. Nevertheless, a merger makes logical sense and would provide serious economies of scale for the two satellite players if they came together.

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