Dish CEO Charlie Ergen approached the CEO of DirecTV, Mike White, about possible merging the two companies, Bloomberg reports.
Both companies do the same thing: Satellite TV, so it makes sense for them to merge. Instead of fighting each other, they could combine to fight Comcast, Verizon, and AT&T.
A merger between the companies has been discussed for years and nothing has come of it.
It doesn’t sound like much is happening here, either. Bloomberg says White is hesitant to do a deal, but he wouldn’t rule it out. There have been no high level formal discussions.
Both companies stocks are up on the news. And this feels like a trial balloon to test market reaction.
The TV market is in a state of transition. Pay-TV subscriptions are trending downward. Comcast has committed to buying Time Warner Cable. These satellite TV providers are trying to secure themselves for whatever happens next.