DirecTV Acquisition of Dish Network in Jeopardy

DirecTV's acquisition of Dish Network is in jeopardy as Dish's bondholders rejected a crucial debt exchange offer that is central to the merger. The proposed deal involved DirecTV acquiring Dish for a nominal $1 while asking bondholders to swap $9.75 billion of debt for $8 billion in new bonds, effectively taking a 20% loss. Despite an improved offer reducing bondholder losses by $70 million, the rejection persists with the bondholders criticizing the deal as detrimental to their interests. DirecTV has set a deadline of November 22 to resolve the impasse or terminate the acquisition. The merger aimed to create the largest pay-TV company in the U.S., combining DirecTV and Dish's Sling TV with an estimated 20 million subscribers. The fate of the merger now depends on further negotiations involving Dish Network's leadership.