Skip to Content

Merger of DIRECTV and DISH is officially dead after bondholders stand firm

Merger of DIRECTV and DISH is officially dead after bondholders stand firm

DISH bondholders refused to take less for their investment as part of the merger, and now the deal is officially scuttled.

There’ll be a new entry in the corporate obituary pages today. The merger between DIRECTV and DISH is officially dead, scuttled thanks to the intransigence of a group of DISH investors. The deal cancels a transaction that would have created the largest pay-TV company in the United States and ends a flirtation between DIRECTV and DISH that has been carried on for decades without ever being officiallyconsummated.

Key Details:

  • The merger deal has been terminated thanks to a refusal of DISH bondholders to take less for their investment.
  • A combined DISH/DIRECTV would have had almost 20 million customers.
  • The merger would have placed DISH’s satellite service and the streamer Sling TV under DIRECTV’s control.

The deal was first announced in September, and analysts were immediately buzzing at the possibilities a merger would unlock. Combining DISH and DIRECTV would have created a pay-TV company with almost 20 million customers, around 5 million more than the next-largest competitor.

A consummated merger would have seen DIRECTV acquire DISH’s pay-TV segment for a nominal fee of $1, as well as almost $10 billion of DISH’s debt. The transaction would have given DIRECTV control of the DISH satellite service, as well as its live TV streaming platform Sling TV.

The transaction hit a snag in late October when a group of DISH investors informed the two companies that they would not accept a proposed bond swap that would have forced them to take a “haircut” of around $1.57 billion off their investment.

DIRECTV sweetened the offer to this group of bondholders, but they still refused to budge. Things continued to escalate behind the scenes, with DIRECTV threatening to walk away from the deal if it and DISH could not resolve the situation with these investors quickly.

That possibility has now come to pass. DIRECTV has officially backed out of the merger, leaving serious questions about the future of DISH’s business.

“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 Thursday.

Now, DISH is faced with a future of declining customers and revenues. The company is desperately trying to build a nationwide 5G broadband network, but without the DIRECTV merger, it may be too little, too late for the company. DIRECTV clearly felt it had to protect its own bottom line before it was dragged too deeply into a messy merger with DISH, and the deal is now finished.

  • DIRECTV STREAM

    DIRECTV STREAM is The Streamable’s choice for the best live TV streaming service for users who want the most channels. With an unbeatable lineup of local, news, sports, and entertainment channels, four main channel packages, an unlimited DVR, and 20 simultaneous streams at home, DIRECTV STREAM is a great choice for any cord-cutter.

    DIRECTV STREAM starts at $86.99 / month for their Entertainment package. You can access your local regional sports network with the Choice package, which begins at $114.99 / month They also have an Ultimate ($129.99) for 215 channels and Premier ($169.99) for 220 channels. There is no contract, no extra RSN fees, and no broadcast TV fees.

    The service was previously called AT&T TV.

    5-Day Trial

    Choose $15 OFF each month for the first 2 months of Entertainment with Sports Pack or $20 OFF each month for the first 3 months of Choice or Ultimate.

  • Sling TV

    Sling TV is The Streamable’s choice for cord cutters on a budget. Sling is a live TV streaming service with multiple channel packages. The $45.99/month Sling Orange plan offers about 30 channels, including Disney Channel and ESPN. The $45.99/month Sling Blue plan offers about 40 channels, including ABC, Fox, and NBC in major markets.

    You can combine Orange+Blue for a total of $60.99 / month. Sling also offers many channel add-on packages starting at $6/month.

    Get 50% OFF

    Limited Time: Get 50% OFF Your First Month of Sling TV


David covers the biggest news stories, live events, premieres, and informational pieces for The Streamable. Before joining TS, he wrote extensively for Screen Rant and has years of experience writing about the entertainment and streaming industries. He's a Broncos fan, streams on his Toshiba Fire TV, and his favorites include "Andor," "Rings of Power," and "Star Trek: Strange New Worlds."

DIRECTV STREAM Cash Back

Let us know your e-mail address to send your $50 Amazon Gift Card when you sign up for DIRECTV STREAM.

You will receive it ~2 weeks after you complete your first month of service.

Sling TV Cash Back

Let us know your e-mail address to send your $25 Uber Eats Gift Card when you sign up for Sling TV.

You will receive it ~2 weeks after you complete your first month of service.

Hulu Live TV Cash Back

Let us know your e-mail address to send your $35 Amazon Gift Card when you sign up for Hulu Live TV.

You will receive it ~2 weeks after you complete your first month of service.