Updated: DIRECTV Says Dish Merger Will Be Terminated Tonight

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

DIRECTV announced last night that it has notified EchoStar that it will terminate its agreement to purchase Dish’s satellite service and Sling TV’s live streaming service, effective today (November 22) at 11:59 p.m., ET.

Update: The deal has been cancelled but financial analysts are already speculating the companies will return to the negotiating table at some point.

The company said it will end the agreement because Dish has been unable to resolve its creditor issues. As part of the DIRECTV-Dish deal, which was announced September 30, DIRECTV agreed to assume Dish’s debt which is around $10 billion. However, the agreement was contingent on Dish convincing the creditors to accept a debt exchange which the creditors have rejected.

“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,” DIRECTV CEO Bill Morrow said in a statement. “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.”

The DIRECTV statement said the termination of the Dish deal will not affect AT&T’s sale of its 70 percent stake in the company to private equity firm, TPG, which now holds a 30 percent stake.

DIRECTV’s decision to end the sale leaves Dish in financial peril. The satcaster is now stuck with the $10 billion debt while Dish continues to lose subscribers to streaming services.

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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.