DirecTV said on Monday it is acquiring competing satellite service Dish Network following years of talk around a potential merger.
The deal, if approved from government regulators, would make the combined company one of the biggest paid TV distributors in the US.
The move comes at a time when the companies continue to face heightened competition from streaming services such as Netflix and Hulu, as more people cut the cord on traditional satellite subscription services to save costs.
In a press release, DirecTV and Dish parent company EchoStar said the merger will create a "more robust competitive force in a video industry dominated by streaming services owned by large tech companies and programmers." The deal will also include EchoStar's Sling TV live streaming brand.
The acquisition, which will combine about 20 million subscribers among the services, intends to provide consumers with "compelling video options," along with "more choices and better value."
EchoStar would keep other parts of the company intact, including its wireless business.
DirecTV said it will pay EchoStar $1 for Dish but will assume $9.75 billion of its debt. At the same time, private equity firm TPG will acquire AT&T's 70% stake in DirecTV. (In 2015, AT&T purchased DirecTV in a blockbuster deal but sold 30% to TPG years later).
A DirecTV and Dish merger has been a long time in the making. The companies attempted to join forces as far back as 22 years ago in a deal worth $19 billion but was blocked by the government over monopoly concerns.