DirecTV Cancels Merger With Dish Over Debt Swap

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DirecTV Cancels Merger With Dish Over Debt Swap
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DirecTV's withdrawal appears to mark the end of its years-long pursuit to acquire both Dish and Sling, following its initial bid in September.

DirecTV announced this week that it is cancelling its merger with Dish due to concerns over a debt swap by bond holders.The agreement hinged on Dish bondholders accepting a debt swap, which would have required them to exchange their existing holdings for new debt in the restructured company—a move that would have collectively cost them approximately $1.6 billion.

The two companies nearly combined more than two decades ago, but the Federal Communications Commission blocked the $18.5 billion deal at the time, citing antitrust concerns.Merger CanceledIn a statement on Thursday, Morrow said, '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.

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