DIRECTV-Dish Merger Could Be Dead Due to Debt Issue

By Phillip Swann
The TV Answer Man –Follow me on X.
Former editor of Satellite DIRECT magazine. Reported on DIRECTV for 30 years.

DIRECTV is threatening to terminate its agreement to buy Dish and Sling TV unless Dish’s creditors agree to a debt exchange by November 22. The news was first reported last night by Bloomberg News but has been confirmed by Reuters and CNBC.

The TV provider 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.

However, Dish’s creditors say the transaction would cost them as much as $1.6 billion and they have rejected Dish’s proposal to reduce the loss by $70 million, according to Bloomberg News. 

In an e-mail to Reuters, DIRECTV says the issue will force it to abandon its purchase of Dish unless it’s resolved in nine days. The sale is contingent on Dish resolving the debt problem.

“A successful exchange was a condition for acquiring the Dish video business. Given the outcome of the (Dish) exchange, DirecTV will have no choice but to terminate the acquisition of Dish by midnight on Nov. 22,” a DIRECTV spokesman told Reuters.

CNBC reports that DIRECTV will not offer more concessions and that Dish Chairman Charlie Ergen is unlikely to seek a resolution through additional negotiations.