DirecTV cancels Dish Network acquisition over debt disagreement

DirecTV has notified EchoStar Corp. that it will terminate its acquisition of rival Dish Network, after failing to secure bondholders’ approval for a key debt exchange.

The move ends a deal that aimed to create the largest US pay-TV provider. DirectTV intended to buy Dish and Sling from EchoStar for $1 and assume ~$9.75 billion in debt.

Despite efforts, Dish bondholders rejected DirecTV’s revised offer to reduce bondholder losses by $70 million.

DirecTV’s CEO Bill Morrow stated that the termination was necessary to protect their financial flexibility. The cancellation does not affect TPG’s planned acquisition of AT&T’s stake in DirecTV.