Apple is buying DirecTv, the satellite TV provider founded by Direc founder Ted Turner, for $39.7 billion.
The deal, which is expected to close by the end of the year, is expected by analysts to create the world’s largest video service provider and potentially become the largest cable company.
Direc’s stock is up by nearly 1% in after-hours trading.
The deal comes as Direc has struggled with declining subscribers and growing competition from cable providers.
In 2015, the company saw its revenue decline 13% and its subscriber count fall by almost 2 million.
DirefTV was acquired by Charter Communications in 2014 for $4.9 billion.
“DirecTV’s continued growth and growth in new programming and services will continue to make it a strong player in the evolving market for content, and we believe this acquisition will accelerate its continued growth,” said Michael Nathanson, Apple’s senior vice president of video, said in a statement.
“We will be a proud Direc supporter and partner for many years to come.”
Diretas video service, which was founded in 2009 and has since expanded into live TV, will be available on Apple’s streaming service.
Diretas customers will also have access to Directv’s apps on their iPhones and iPads.
Apple will also offer its own content, including video-on-demand services and live sports.
Apple already offers Direc TV in select markets, including Las Vegas and Chicago, and plans to launch Direc in other markets this year.
Direktv, which will continue operating its cable-TV services in the United States, will continue operations in China.