DirecTV Ends Acquisition of Dish Network

DirecTV has officially terminated its acquisition of Dish Network, a decision stemming from Dish bondholders' refusal to accept a debt exchange critical to the deal. The proposed acquisition, announced in September, would have allowed DirecTV to purchase Dish's satellite TV and Sling TV business for $1 while assuming approximately $9.75 billion of Dish's debt. However, the bondholders objected to the terms, which required them to exchange their debt for a reduced principal amount in DirecTV's debt, resulting in a significant financial loss. This decision marks the end of DirecTV's long-standing pursuit to merge with Dish, a deal that promised to create one of the largest pay-TV distributors in the U.S. The termination will not affect the sale of DirecTV's remaining 70% stake from AT&T to TPG, expected to close in 2025. Dish now faces significant financial challenges, with its strategy to offload TV assets and focus on 5G development disrupted by the failed merger.