DirecTV Cancels $9.75B Dish Merger After Bondholders Reject $1.6B Debt Swap

Nov 22, 2024, 08:54 AM

DirecTV has terminated its planned acquisition of rival satellite TV provider Dish Network after Dish's bondholders rejected a proposed $1.6 billion debt exchange offer required to close the deal. The merger, which valued Dish at $1 plus the assumption of $9.75 billion in debt, would have created the largest U.S. pay-TV provider with approximately 18 million subscribers. Bondholders' opposition to the $1.6 billion debt swap led DirecTV to end the agreement, citing the need to protect its own interests. This marks the second time a merger between DirecTV and Dish, led by chairman Charlie Ergen, has failed, with a previous attempt being blocked by the FCC over two decades ago.