DIRECTV Abandons DISH Acquisition

DIRECTV is terminating its agreement to acquire EchoStar’s video distribution business, which includes the DISH satellite TV platform.

DIRECTV announced the deal to acquire DISH in September, bringing together two heavyweights in the U.S. pay-TV landscape. It has terminated that agreement after DISH noteholders failed to agree to the proposed exchange debt offer terms issued by EchoStar.

“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, CEO 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.”