See what's being clicked on FoxBusiness.com.
DirecTV announced it is withdrawing from its plan to acquire EchoStar's video distribution service DISH DBS after Dish's bondholders rejected a debt exchange offer from the satellite TV provider.
“A successful exchange was a condition of our acquisition of the DISH Video business,” a DirecTV spokesperson said in a statement to FOX Business on Wednesday. “Given the outcome of the EchoStar exchange, DIRECTV will be forced to close its acquisition of DISH by midnight on November 22nd.”
DirecTV and Dish satellite dish receivers on the roof of a home in Wrightwood, Calif., Monday, Sept. 30, 2024. (Kyle Grillot/Bloomberg via Getty Images/Getty Images)
DirecTV announced in September that it would pay $1 for DISH DBS, meaning it would own DISH TV and Sling TV, and agreed to assume Dish's $9.75 billion in debt in the deal.
But a group of DISH bondholders on Monday rejected a debt exchange offer from DirecTV that was conditional on it accepting a $1.5 billion “haircut.”
Federal judge blocks luxury brand merger between Tapestry and Capri
DISH did not immediately respond to FOX Business' request for comment on the situation.
DirecTV said it had to pull out of its planned acquisition of Dish after bondholders rejected the debt swap that was part of the deal. (Jaque Silva/SOPA Images/LightRocket via Getty Images / Getty Images)
The proposed merger is seen as a strategic combination in the shrinking pay-TV market, as both DirecTV and DISH face increasing competition from streaming services.
NETFLIX surpasses 70 million monthly active users on ad-supported plans
Streaming services have gained an edge over satellite television in recent years due to the ease of on-demand access through Internet connectivity. As traditional satellite TV subscription prices rise and the desire for on-demand viewing increases, more households have begun to disconnect from their traditional satellite providers.
| ticker | safety | last | change | change % |
|---|---|---|---|---|
| SATS | Echostar Co., Ltd. | 22.41 | -0.35 |
-1.54% |
In announcing the proposed merger, DirecTV and Echostar said the partnership “will benefit consumers by creating a stronger competitive edge in a video industry dominated by the affiliated streaming services.” . major technology companies And programmers too. ”
CLICK HERE TO GET FOX BUSINESS ON THE GO
The deal would also provide a critical lifeline for Echostar, which was co-founded by telecommunications entrepreneur Charlie Ergen and currently has more than $20 billion in debt.
FOX Business' Daniella Genovese and Reuters contributed to this report.
