EchoStar was left in limbo as DirecTV edited…

DirecTV detailed its intention to abandon its bid to acquire EchoStar’s satellite video distribution business by the end of today ET, potentially impacting the latter’s ongoing debt restructuring efforts.

Bondholders in EchoStar’s Dish DBS business were unable to agree on a debt transfer element contained in a deal the satellite service provider struck in late September, DirecTV said.

The upcoming decision casts a shadow over EchoStar’s debt burden as the company apparently looks to the sale along with new financing to cover payments due this month that have long been seen as a huge problem for it.

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

Morrow sought to allay any concerns about DirecTV’s ability to move forward, saying it was “well positioned” with a “strong balance sheet and the support of our long-term partner TPG.”

DirecTV clarified that the decision to terminate the EchoStar deal “does not impact TPG’s acquisition of the remaining 70 percent stake” in the company from AT&T, which the company still expects to complete in the second half of 2025.