Satellite TV provider DirecTV (T, TPG) will no longer merge with rival Dish Network (SATS) after bondholders rejected the offer.
The deal, which was contingent on a key debt exchange, would have created one of the nation’s largest pay-TV providers. Both companies had discussed a possible combination more than two decades ago.
“While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV’s balance sheet and our operational flexibility,” DirecTV CEO Bill Morrow said in a statement.
Shares in EchoStar, which owns Dish Network, fell by more than 4% on Friday following the news.
The deal would have helped aid EchoStar’s heavy debt load while also helping cut costs for the owners of DirecTV. AT&T spun off DirecTV in 2021, moving it into a joint…
