By Phillip Swann
The TV Answer Man –Follow me on X.
Former editor of Satellite DIRECT magazine. Reported on DIRECTV for 30 years.
The DIRECTV-Dish merger is attracting opposition from Dish’s creditors who say the proposal would cost them as much as $1.6 billion, according to Bloomberg News.
DIRECTV agreed on September 30 to purchase Dish’s satellite TV business and Sling TV, the live streaming service, for $1. However, the deal also includes DIRECTV assuming Dish’s debt which is around $10 billion.
Bloomberg writes that the creditors believe the transaction would force them to accept less in repayment, which they say is “unworkable.” They say DIRECTV can negotiate a new deal with them, close the sale and pay a premium, or face a lawsuit.
In a letter to DIRECTV, the creditors say the two satellite providers “crafted a deal that allows shareholder to further siphon billions of dollars of value away…while asking (the) creditors to voluntarily forfeit over $1.56 billion in value they are owed. It should be no surprise to anyone that such a deal is unworkable.”
DIRECTV did not respond to Bloomberg’s request for comment.
In addition to resolving the creditors’ issue, the DIRECTV-Dish sale must be approved by federal regulators which could take up to a year. (Here’s our prediction on whether the sale will be approved.)
if approved, the DIRECTV-Dish deal will give DIRECTV nearly 20 million subscribers, making it the largest multi-channel, pay TV service in the nation.
Have a question about new TV technologies? Send it to The TV Answer Man at swann@tvanswerman.com Please include your first name and hometown in your message.
The TV Answer Man is veteran journalist Phillip Swann who has covered the TV technology scene for more than three decades. He will report on the latest news and answer your questions regarding new devices and services that are changing the way you watch television. See the bio for Phillip Swann here.