Direct TV Merges with Dish Network

[Pink Freud]

Direct TV will pay Dish Network just one dollar and assume all of its debt.

The deal still hinges on Dish bondholders agreeing on net debt lower than $1.56 billion, which a DirecTV spokesperson said the company will look to secure in the coming weeks. Bondholders can accept a lower percentage, take a slightly higher percentage today, or wait it out, which risks Dish ending up in bankruptcy.

Dish currently has a $2 billion debt maturity coming up on November 23. To secure funding through a shared revenue stream, TPG and DirecTV will provide Dish with a $10 billion loan that will allow the company to pay off its maturity on November 24.

Naturally, the merger was sold to federal regulators as a way to (ahem) reduce costs to consumers (cough, choke, gag, snort). Yes, by eliminating your biggest competitor you'll lower your prices. Uh huh.

[netboy65]

Direct TV will pay Dish Network just one dollar and assume all of its debt.

The deal still hinges on Dish bondholders agreeing on net debt lower than $1.56 billion, which a DirecTV spokesperson said the company will look to secure in the coming weeks. Bondholders can accept a lower percentage, take a slightly higher percentage today, or wait it out, which risks Dish ending up in bankruptcy.

Dish currently has a $2 billion debt maturity coming up on November 23. To secure funding through a shared revenue stream, TPG and DirecTV will provide Dish with a $10 billion loan that will allow the company to pay off its maturity on November 24.

Naturally, the merger was sold to federal regulators as a way to (ahem) reduce costs to consumers (cough, choke, gag, snort). Yes, by eliminating your biggest competitor you'll lower your prices. Uh huh.

Dish isn't their biggest competitor, streaming is.