Direct TV Merges with Dish Network
Posted: 30 Sep 2024 12:08 pm
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.
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.