DirecTV has announced the cancellation of its proposed acquisition of Dish Network following the rejection of the offer by Dish’s bondholders.
This acquisition was predicated on bondholders agreeing to swap their existing debt for shares in the restructured entity, which would have involved a financial sacrifice totaling around $1.6 billion among them.
The decision to withdraw comes after DirecTV had pursued the acquisition for several years, an effort that gained momentum with a formal bid made in September.

DirecTV intended to acquire both Dish and its Sling TV subsidiary, owned by EchoStar, through a complex transaction that included a nominal payment of $1 while also assuming approximately $9.8 billion in existing debt.
This deal was contingent on multiple prerequisites, particularly regulatory approvals and the concession from bondholders to forfeit certain debts associated with Dish.
In a statement, DirecTV CEO Bill Morrow emphasized that while the merger was seen as beneficial for stakeholders, the necessary terms for debt exchange were essential to safeguard DirecTV’s financial health and operational agility.

Rumors of a potential merger between DirecTV and Dish have circulated for some time, with discussions resurfacing intermittently over the years.
Notably, efforts to merge the companies were nearly realized more than twenty years ago but were thwarted by the Federal Communications Commission (FCC), which blocked the then $18.5 billion transaction over antitrust issues.

The landscape of the pay-TV industry has dramatically evolved; as more consumers shift towards online streaming services, traditional satellite TV options see a decline in demand.
In response, DirecTV has committed to investing in next-generation streaming technologies and diversifying its product offerings.
This includes blending live television content with direct-to-consumer streaming services.

AT&T acquired DirecTV for an impressive $48.5 billion in 2015. However, in 2021, faced with significant customer losses, AT&T opted to sell a 30% stake in the company to private equity firm TPG for $16.25 billion.
The cancellation of the proposed acquisition does not affect TPG’s ongoing plans to finalize its purchase of the remaining 70% of DirecTV from AT&T for approximately $7.6 billion, expected to close by next year.