Satellite tv for pc TV large DirecTV and Charlie Ergen’s EchoStar mentioned Monday that they’ve entered a definitive settlement beneath which DirecTV will purchase EchoStar’s video distribution enterprise Dish DBS, together with Dish TV and Sling TV, by means of a debt change transaction.

The mixture “will profit U.S. video customers by making a extra strong aggressive drive in a video business dominated by streaming providers owned by massive tech corporations and programmers,” the businesses mentioned. “The transaction will present customers with compelling video choices whereas individually bettering EchoStar’s monetary profile because it continues to boost and additional deploy its nationwide 5G Open RAN wi-fi community.”

“DIRECTV operates in a extremely aggressive video distribution business,” mentioned Invoice Morrow, CEO of DIRECTV. “With better scale, we anticipate a mixed DIRECTV and DISH will probably be higher in a position to work with programmers to appreciate our imaginative and prescient for the way forward for TV, which is to mixture, curate, and distribute content material tailor-made to prospects’ pursuits, and to be higher positioned to appreciate working efficiencies whereas creating worth for patrons by means of extra funding.”

Added EchoStar president and CEO Hamid Akhavan: “This settlement is in one of the best pursuits of EchoStar’s prospects, shareholders, bondholders, workers, and companions. With an improved monetary profile, we will probably be higher positioned to proceed enhancing and deploying our nationwide 5G Open RAN wi-fi community. It will present U.S. wi-fi customers with extra selections and assist to drive innovation at a sooner tempo. We anticipate DISH and EchoStar bondholders to profit from two corporations with stronger monetary profiles and extra sustainable capital constructions.”