DirecTV has abandoned its proposed merger with Dish Network after EchoStar bondholders with $10.7 billion of debt in Dish and its DBS subsidiary rejected an exchange provision, dooming a deal that would have created the largest pay-TV service in the U.S. EchoStar announced it respects the decision and will continue to operate its own pay-TV brands. While DirecTV still believes the merger “would have benefitted all stakeholders,” it deemed the exchange necessary to protect its balance sheet operational flexibility, DirecTV CEO Bill Morrow explained.

DirecTV, Morrow said in an announcement, is “well positioned for the future with a strong balance sheet and support from our long-term partner TPG,” whose acquisition of the remaining 70 percent stake in DirecTV from AT&T the termination with Dish does not affect. That deal is expected to close in the second half of 2025.

The Wall Street Journal wrote that “recent financing arrangements mean EchoStar has a robust foundation to operate and grow without the merger,” per comments from a company spokesperson.

This is not the first time DirecTV tried to absorb Dish from parent EchoStar. This most recent merger conversations surfaced in late September, when DirecTV agreed to buy Dish for a nominal $1 and about $9.75 billion in debt. The deal fell apart last week after key creditors refused their support.

“The merger’s failure poses another setback for the satellite companies and their respective owners, EchoStar and TPG. Executives had banked on saving both satellite operators’ flagging fortunes by pooling their resources to negotiate better rates for the TV programming they carry,” summarizes WSJ.

“EchoStar confirmed in a filing on Friday that it had received written notice from DirecTV on November 20,” writes Bloomberg, added that the company also confirmed that “no termination fee or other payment is due from either party” as a result of canceling.

“A group of Dish bondholders rejected an improved offer put forward by DirecTV at the end of October,” Bloomberg adds, noting that “revised terms lowered the minimum loss on $8.9 billion of bonds by $70 million to $1.5 billion.”

Variety quotes EchoStar spokesperson Ted Wietecha saying the company is doing just fine without DirecTV. “We will continue to deliver the excellent customer experience our pay-TV brands are known for,” Wietecha explained.