RBC Capital notes that according to an unconfirmed Reuters article on Friday, AT&T (T) and its JV partner TPG (TPG) are in preliminary talks to merge DirecTV with EchoStar (SATS)-owned Dish. The firm views a potential merger of Dish and DirecTV as positive for both AT&T and EchoStar. Cost synergy opportunities could be accretive to AT&T cashflow, while for EchoStar the transaction could bring a cash injection, required to advance its 5G deployment before the June 2025 FCC deadline, and therefore also be incrementally helpful for tower leasing at towerCos such as American Tower (AMT), Crown Castle (CCI), and SBA Communications (SBAC), RBC adds.
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