DirecTV has officially terminated its planned acquisition of rival Dish Network, ending a years-long pursuit to merge the two satellite television providers. The decision came after Dish bondholders rejected a critical debt swap that was a condition for the deal. The proposed swap would have resulted in an estimated $1.6 billion loss for the bondholders.
This termination impacts DirecTV's strategy for consolidating in the declining satellite TV market. For AT&T, which still held a 70% stake in DirecTV at this time, the collapse of the deal means DirecTV will not proceed with this particular path for market consolidation. The outcome resolves the uncertainty surrounding the merger but confirms the failure of the transaction.
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