Telecom giant AT&T (NYSE:T) and TPG Capital (NASDAQ:TPG), joint-venture partners, are once again exploring the possibility of merging their DirecTV service with EchoStar’s Dish, Bloomberg reported over the weekend, citing sources familiar with the matter.

The prospect of this merger is not entirely new. In 2022, the two entities made a similar attempt, only to face a roadblock from the U.S. Justice Department.

According to Bloomberg’s report, the talks between DirecTV and EchoStar are in their nascent stages. Although no formal agreement has been reached as of now, the discussions are ongoing and could fizzle out without fruition.

AT&T (T) spokesperson stated, “We do not comment on rumors or speculation,” reflecting the policy of reticence regarding such unconfirmed reports.

Dish, on the other hand, did not respond immediately to a request for comment from Seeking Alpha, leaving the situation ripe for further speculation.

In light of the evolving landscape in the entertainment industry, marked by the emergence of major players like Amazon’s Prime Video, Google’s YouTube TV, Netflix, Comcast, and Charter, the proposed merger is likely to trigger antitrust scrutiny once more.

Noteworthy is AT&T’s divestiture of DirecTV as part of a 2021 deal with TPG, valuing the company at $16 billion. While AT&T relinquished operational control of the satellite provider and its television operations, it retained a significant 70% financial interest in the spun-off DirecTV entity.

Reports suggest that AT&T had been exploring various options within the joint venture, ranging from dividend recapitalization to bringing in new investors or even a complete sell-off.

Recent upheavals in the sector, such as Disney withholding network access from over 11 million DirecTV subscribers due to failed carriage agreements and a court injunction blocking a collaboration involving Disney, Fox, and Warner Bros. Discovery, underscore the challenging environment in which such deals are being pursued.