DirecTV has abandoned its bid to purchase Dish TV and Sling TV from EchoStar, citing disagreements regarding DISH’s debt.

DirecTV announced in late September 2024 that it was pursuing a deal to purchase EchoStar’s video streaming business, including both Dish TV and Sling TV. The deal was short-lived, however, with DirecTV abandoning it after Dish noteholders rebuffed DirecTV’s proposal, which would have required them to take a loss on Dish’s debt.

“While we believed a combination of DIRECTV and DISH would have benefitted all stakeholders, we have terminated the transaction because the proposed Exchange Terms were necessary to protect DIRECTV’s balance sheet and our operational flexibility,” said Bill Morrow, CEO of DIRECTV. “DIRECTV will advance our mission to aggregate, curate, and distribute content tailored to customers’ interests by pursuing innovative products and providing customers with additional choice, flexibility, and control. We are well positioned for the future with a strong balance sheet and support from our long-term partner TPG.”

Dish has been struggling recently, with the company trying to roll out its 5G network in a bid to become the fourth national wireless carrier in the US. The company has faced regulatory losses, massive customer churn, and a ransomware attack that brought the company to its knees.

It’s unclear how the deal’s breakdown will impact Dish over the long haul, but it’s definnitely another setback for the company.