DirecTV is buying Dish and Sling, a deal it has sought to complete for years, as the company seeks to better compete against streaming services that have become dominant.

DirecTV said Monday that it will acquire Dish TV and Sling TV from its owner EchoStar in a debt exchange transaction that includes a payment of $1, plus the assumption of approximately $9.8 billion in debt.

The prospect of a DirecTV-Dish combo has long been rumored, with headlines about reported talks popping up over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked their owners' then-$18.5 billion deal, citing antitrust concerns.

The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming giants, demand for more traditional satellite continues to shrink. And, although high-profile acquisitions have proven to be particularly tough under the Biden-Harris administration, that may make regulators more inclined to approve DirecTV and Dish's pairing this time around.

DirecTV said Monday that the transaction will help it bring smaller content packages to consumer at lower prices and essentially provide a one-stop shopping experience for entertainment programming.

It's hoping this will appeal to those who have left satellite video services for streaming. The company said that combined, DirecTV and Dish have collectively lost 63% of their satellite customers since 2016.

"DirecTV operates in a highly competitive video distribution industry," DirecTV CEO Bill Morrow said in a statement. "With greater scale, we expect a combined DirecTV and Dish will be better able to work with programmers to realize our vision for the future of tv, which is to aggregate, curate, and distribute content tailored to customers' interests, and to be better positioned to realize operating efficiencies while creating value for customers through additional investment."

The current deal could provide a key lifeline for EchoStar. The Colorado-based telecommunications company has reportedly faced the prospect of bankruptcy as it continues to burn through cash and see losses pile up.

In a recent securities filing, EchoStar disclosed that it had just $521 million in "cash on hand." And the company forecast negative cash flows for the remainder of the year — while also pointing to major looming debt payments, with more than $1.98 billion of debt set to mature in November.

"With an improved financial profile, we will be better positioned to continue enhancing and deploying our nationwide 5G Open RAN wireless network," EchoStar President and CEO Hamid Akhavan said. "This will provide U.S. wireless consumers with more choices and help to drive innovation at a faster pace."

By shedding Dish, EchoStar will be able to focus its efforts elsewhere, like its wireless carrier Boost Mobile.

"We are playing to win in the wireless business. there's no doubt about it," Akhavan said during a conference call, adding that the company may need to seek additional funding and financing in the future to achieve its goals.

Shares of EchoStar fell more than 14% in Monday midday trading.

The DirecTV and Dish deal is targeted to close in 2025's fourth quarter. But it is contingent on several factors, including regulatory approvals and bondholders writing off nearly $1.6 billion in debt related to Dish.

The combined company will be based in El Segundo, California.

"We believe regulatory approval is likely to be greater than 50% given the opportunity for the combined company to improve its competitiveness to offer a range of linear video packages as well as to take a more aggressive stance on offering a live streaming video product," Michael Rollins of Citi Investment Research wrote in a note to clients.

But the analyst added that there's still significant uncertainty related to whether or not the Federal Communications Commission, Department of Justice and other possible regulators give the necessary approvals, based on previous talks with company management and industry experts over the last few years.

Shortly before DirecTV made its announcement, AT&T said it was selling its remaining stake in DirecTV to private equity firm TPG in a deal valued at about $7.6 billion.

The move ends the communication giant's remaining ties to the entertainment industry.

AT&T said Monday in a filing with the Securities and Exchange Commission that it will receive payments from TPG and DirecTV for its remaining 70% stake in the satellite TV company. This includes $1.7 billion in the second half of the year and $5.4 billion next year. The remaining amount will be paid in 2029.

AT&T purchased DirectTV for $48.5 billion back in 2015. But in 2021, following the loss of millions of customers, AT&T sold a 30% stake of the business to TPG for $16.25 billion.

AT&T's deal is expected to close in the second half of 2025.