DirecTV has terminated its agreement to acquire the Dish and Sling TV television business from EchoStar. DirecTV had offered to buy its competitor for a dollar and assume about $9.75 billion of debt. The companies previously announced that they had reached a deal, but it required two-thirds of the creditors of Dish to agree to exchange their debt in Dish for debt in the combined company at a discount. The proposed deal would have created one of the largest pay television providers in the United States, with around 20 million subscribers remaining in a declining market.
“While we believed a combination of DirecTV and Dish would have benefitted all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV’s balance sheet and our operational flexibility,” said Bill Morrow, the chief executive of DirecTV.
“DirecTV will advance our mission to aggregate, curate, and distribute content tailored to customers’ interests by pursuing innovative products and providing customers with additional choice, flexibility, and control. We are well positioned for the future with a strong balance sheet and support from our long-term partner TPG.”
DirecTV will continue to invest in next-generation streaming platforms and revolutionize the industry through new packaging options while integrating content from live television alongside direct-to-consumer services.
The termination of the Dish acquisition does not affect TPG’s acquisition of the remaining 70% stake in DirecTV from AT&T, which is expected to close in the second half of 2025.
It is the latest failure to achieve a merger of the two rival satellite television companies, which was previously blocked on anti-competitive grounds. The growth of online video has led to the erosion of the subscriber base for both satellite television providers.
It leaves Dish and its Sling TV online service in a precarious position, with EchoStar burdened with more than $20 billion in debt. DirecTV may now simply wait to see what happens to Dish before making its next move.