DirecTV is pulling out of an agreement to buy its satellite rival Dish after bondholders objected to terms of the deal. DirecTV issued an announcement last night saying “it has notified EchoStar of its election to terminate, effective as of 11:59 p.m., ET on Friday, November 22nd, 2024, the Equity Purchase Agreement (EPA) pursuant to which it had agreed to acquire EchoStar’s video distribution business, Dish DBS.”
In the deal announced on September 30, DirecTV was going to buy the Dish satellite TV and Sling TV streaming business from EchoStar for a nominal fee of $1. DirecTV would have taken on $9.75 billion of Dish debt if the transaction moved ahead. The deal did not include the Dish Network cellular business.
Dish bondholders quickly objected to terms requiring them to take a loss on the value of their debt. DirecTV had said Dish notes would be exchanged with “a reduced principal amount of DirecTV debt which will have terms and collateral that mirror DirecTV’s existing secured debt.” The principal amount would have been reduced by at least $1.568 billion.
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