Merger talks between satellite TV broadcasters Dish Network and DirecTV could be renewed in the wake of AT&T's agreement to buy wireless spectrum licenses from EchoStar in a $23 billion deal. EchoStar stock surged on the spectrum deal while AT&T stock dipped.
Private equity firm TPG, which acquired DirecTV from AT&T, last year shelved a merger between the satellite TV firms after EchoStar failed to complete a deleveraging debt exchange.
"A DirecTV merger could be revisited," TD Cowen analyst Gregory Williams told IBD. "It may make more sense sooner rather than later to optimize the synergies. Admittedly, SATS is in a far better balance sheet position now, thus the urgency to do so is fading."
At Deutsche Bank, analyst Bryan Kraft said in a report: "We believe this $23 billion pending sale of spectrum to AT&T, combined with ongoing pressure from the FCC on SATS to sell spectrum, will lead to further actions by EchoStar that will unlock shareholder value and propel the stock higher in the coming months. These include additional spectrum sales and revisiting a Dish Network-DirecTV merger."
FCC Needs To Approve Spectrum Deal
The AT&T-EchoStar spectrum deal requires approval by the Federal Communications Commission. Further, AT&T will acquire roughly 30 MHz of nationwide 3.45 GHz midband spectrum and roughly 20 MHz of nationwide 600 MHz low-band spectrum for about $23 billion. The all-cash transaction is expected to close in mid-2026.
EchoStar, controlled by Charlie Ergen, had struggled to pay down debt amid FCC deadlines to build out a 5G wireless network. Also, EchoStar recently announced a new foray into global LEO wideband satellite services.
In the June quarter, EchoStar revenue fell 6% to $3.725 billion, missing estimates of $3.829 billion.
But EchoStar added 212,000 wireless subscribers, well above consensus estimates of 66,000. It had 1.55 million wireless subscribers at the end of June.
In addition, AT&T and EchoStar agreed to expand their long-term wholesale network services agreement, enabling EchoStar to sell wireless services under the Boost Mobile brand.
On the stock market today, EchoStar stock traded sideways, last down a fraction at 56.90. Further, EchoStar stock has jumped 150% in 2025.
Amid the spectrum deal, AT&T reiterated 2025 financial guidance, along with the company's plans for $20 billion in shareholder capital returns from 2025 to 2027.
AT&T stock rose over 1% to 29.24 on Friday. Shares have gained 28% in 2025.
EchoStar Stock Technical Ratings
Meanwhile, EchoStar stock holds an Accumulation/Distribution Rating of B-, according to IBD stock checkup. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.
Also, EchoStar stock holds a Composite Rating of 65 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
