Illustration by Alex Castro / The Verge
DirecTV has dropped its plans to acquire Dish, the company announced Thursday. The deal would’ve created a TV service megamerger, but it fell through after Dish bondholders rejected the takeover.
In September, DirecTV reached an agreement to acquire Dish, Sling TV, and EchoStar’s TV business for just one dollar, while also taking on Dish’s $9.75 billion in debt. However, Dish bondholders — or the investors who lend money to a company (and expect to be paid back) — weren’t happy about the decision, as the transaction would’ve cut the value of their holdings by $1.5 billion.
“While we believed a combination of DIRECTV and DISH would have benefitted all stakeholders, we have terminated the transaction because the proposed Exchange Terms…