The merger of EchoStar's video businesses and DirecTV will also coincide with TPG agreeing to buy out the 70 percent of DirecTV that it does not own from AT&T.

DirecTV is acquiring satellite rival Dish Network, creating by far the largest U.S. pay-TV operator. The two satellite companies, which have struggled in recent years due to cord-cutting and their innate inability to offer broadband services, have discussed coming together several times over the years.

DirecTV is buying Dish and Sling for $1 and the assumption of nearly $10 billion in debt, marking one of the biggest pay-TV mergers ever.

DirecTV and Dish have agreed to merge. The combination will create the biggest traditional pay-TV service at a time when streaming dominates.

The companies say the deal will improve the viability of satellite services in an industry now dominated by streaming providers.

The deal, announced on Monday, will see DirecTV take over Dish and Sling from current owner EchoStar. The move, which has been in the works for years, aims to address the growing challenge posed by streaming services like Netflix and Hulu,

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 20