EchoStar agrees to sell DISH pay-TV unit to DIRECTV for $1 plus net debt
On September 29, 2024, EchoStar signed an Equity Purchase Agreement to sell DISH DBS, which runs its Pay-TV business, to DIRECTV Holdings LLC for $1 in cash plus the assumption of DBS net debt. The press release says closing is expected in the fourth quarter of 2025, subject to regulatory approvals and a debt exchange offer, and that EchoStar will reduce consolidated debt by about $11.7 billion at close. The deal removes the pay-TV business from EchoStar, and the outcome depends on regulatory approval and noteholder participation.
- Consideration: $1 in cash plus assumption of DBS net debt outstanding at closing; DBS becomes a wholly owned subsidiary of DIRECTV Holdings LLC
- Either party may terminate if the deal is not completed within 15 months of signing, extendable by up to two three-month periods
- DBS is exchanging five note series with a total face value of about $9.75 billion, with a minimum principal reduction of $1.568 billion as a closing condition
- TPG Angelo Gordon and DIRECTV provided $2.5 billion of financing to repay DBS's November 2024 debt maturity