DIRECTV cancels deal to buy DISH after creditors reject debt swap terms

22 Nov 2024, 16:09 by Doug Cunningham · UPI

Nov. 22 (UPI) -- DIRECTV terminated its effort to buy the DISH satellite TV provider effective Friday.

DIRECTV said the deal, set to take effect at 11:59 p.m. EST, was derailed by DISH DBS note holder's failure to agree to the deal's exchange debt offer terms.

The debt swap attempt was rejected by DISH creditors, prompting DIRECTV to end the proposed deal.

"While we believed a combination of DIRECTV and DISH would have benefitted all stakeholders, we have terminated the transaction because the proposed Exchange Terms were necessary to protect DIRECTV's balance sheet and our operational flexibility," DIRECTV CEO Bill Morrow said in a statement.

He said despite the failure to consummate DISH deal, DIRECTV is "well positioned for the future with a strong balance sheet and support from our long-term partner TPG."

TPG is a global asset management company.

DISH is owned by EchoStar, a satellite communications, networking services and TV entertainment company. EchoStar owns the brands Boost Mobile, Sling, Hughes, Hughesnet and OnTech.

AT&T once owned DIRECTV, but sold it to TPG.

"DIRECTV will advance our mission to aggregate, curate, and distribute content tailored to customers' interests by pursuing innovative products and providing customers with additional choice, flexibility, and control," Morrow said in his statement.

DIRECTV said it intends to keep investing in "next-generation streaming platforms and revolutionize the industry through new packaging options while integrating content from live TV alongside direct-to-consumer services."