EchoStar left in limbo as DirecTV ditches Dish deal

DirecTV detailed an intention to abandon a bid to acquire EchoStar’s satellite video distribution business by the close of today US eastern time, potentially impacting ongoing debt restructuring efforts by the latter.

Bondholders in EchoStar’s Dish DBS business failed to agree to a debt transfer element contained in the deal the satellite service provider agreed in late September, DirecTV stated.

The pending abandonment casts a shadow over EchoStar’s debt burden, with the company apparently relying on the sale along with fresh financing to cover payments due this month which have long been cited as a huge problem for it.

DirecTV CEO Bill Morrow said the combination with Dish DBS “would have benefitted all stakeholders”, but added the exchange terms stipulated “were necessary to protect” its own finances.

Morrow moved to allay any concerns over DirecTV’s ability to move forward, arguing it is “well positioned”, with a “strong balance sheet and support from our long-term partner TPG”.

DirecTV clarified its decision to terminate the EchoStar deal “does not affect TPG’s acquisition of the remaining 70 per cent stake” of the company from AT&T, which it continues to expect to complete in H2 2025.