DirecTV Scraps Dish Acquisition as Bondholders Push Back on Satellite-TV Merger | Global News Avenue

DirecTV said late Thursday it had canceled its get Dish Network was formed after decades of failed attempts to merge between the two satellite rivals.

DirecTV said it notified Dish owner EchoStar (Sartre) The company plans to cancel the deal at 11:59 p.m. ET on Friday after bondholders of Dish and subsidiary DBS Bank objected.

according to wall street journalbondholders representing about $10.7 billion in debt from Dish and DBS are balking at a deal that “would force them to pare their holdings by about $1.5 billion in exchange for a more secure stake in the soon-to-merge Satellite TV debt” company. “

In September, EchoStar said it would sell its video distribution business, including Dish and streaming service Sling TV, to DirecTV for a nominal $1 to relieve billions of dollars in debt. DirecTV will also assume approximately $9.75 billion in debt.

TPG’s deal to acquire the remaining 70% of DirecTV from AT&T is still in progress

“While we believe the combination of DIRECTV and DISH will benefit all stakeholders, we have terminated the transaction because the terms of the proposed exchange are necessary to protect DIRECTV’s balance sheet and our operating flexibility,” DirecTV said. Chief Executive Officer (CEO) Bill Morrow said.

Morrow added that DirecTV is “well-positioned for the future with a strong balance sheet and the support of our long-term partner TPG.”

DirecTV said the termination of the deal will not affect TPG’s (TPG) Acquisition private equity firmThe remaining 70% of the satellite provider comes from telecommunications giant AT&T (time). The deal, expected to close in the second half of 2025, will see AT&T sell its DirecTV stake for about $7.6 billion over the next few years.

EchoStar’s shares were up more than 2% in premarket trading, while AT&T’s shares were little changed.