EchoStar (SATS +4%) hit fresh 52-week highs today following reports that AT&T (T, Financial) and its joint-venture partner TPG (TPG, Financial) are discussing a merger between DirecTV and DISH Network. SATS, the holding company for DISH Network, owns assets like Boost Mobile, Sling TV, and HughesNet. AT&T acquired DirecTV nearly a decade ago for over $67 billion.

No company spokesperson has confirmed the rumors yet. If the merger happens, it would create a significant player in the pay-TV industry. DirecTV had around 11 million subscribers last year, while DISH had about 6 million at the end of its most recent quarter.

• The combined subscriber count would be substantial but still below each company's peak. DirecTV lost approximately 2 million subscribers last year. In 2013, DirecTV had over 20 million subscribers, and DISH had more than 14 million.
• This isn't the first time a merger has been discussed. In 2002, regulators blocked a merger due to antitrust concerns.
• Today's environment is different. The rise of streaming services like YouTube TV (GOOG, Financial) and FuboTV (FUBO, Financial) has led to increased cord-cutting. SATS’s Sling TV added 78,000 new users in Q2, reaching around 2 million total subscribers and achieving profitability, unlike some competitors.
• AT&T, which formed a joint venture with TPG in 2021 and moved DirecTV to the JV, may be eager for a merger. EchoStar has also invested heavily in wireless infrastructure through its Boost Mobile brand.

Amid a shifting TV landscape dominated by streaming giants like Netflix (NFLX, Financial) and Hulu (DIS, Financial), a merger between DirecTV and DISH Network seems more plausible. Antitrust concerns that once blocked the merger have lessened as both companies have seen declining subscriber numbers. With SATS and AT&T shares reaching one-year highs, investors are optimistic about the merger's potential success.