DIRECTV Announces Termination of Agreement

[Bruce]

TPG is not in the TV business, they are in the "money" business.

I know how the money business works, I came from extreme poverty as a child to what I have now because of that understanding.

In the Directv case as well as the proposed Dish deal, they do the numbers, and may a business that is losing customers based on the $$$ that will flow through to them over the expected life of the business if their investment meets their rate of return investment standards.

Those people that should be fired bought the rest of Directv traditional tv business and will make money on the deal.

They must have a specific plan how they will make money on the deal, I just do not see it.

With the $2B they gave to Echostar, $7B to buy the remaining 70% of DirecTV from AT&T, plus the assumption of $10 Billion of debt DirecTV held, TPG is already $19B in on a service that loses 2 Million Subscribers a year.

DirecTV, with the estimated loss of the 3rd Quarter 2024, are now under 10 Million Subscribers, from a high of 24 Million in 2016, how does TPG Capital turn that around?

 

[MikeD-C05]

I know how the money business works, I came from extreme poverty as a child to what I have now because of that understanding.


They must have a specific plan how they will make money on the deal, I just do not see it.

With the $2B they gave to Echostar, $7B to buy the remaining 70% of DirecTV from AT&T, plus the assumption of $10 Billion of debt DirecTV held, TPG is already $19B in on a service that loses 2 Million Subscribers a year.

DirecTV, with the estimated loss of the 3rd Quarter 2024, are now under 10 Million Subscribers, from a high of 24 Million in 2016, how does TPG Capital turn that around?

Tax write offs!

 

[nelson61]

DirecTV, with the estimated loss of the 3rd Quarter 2024, are now under 10 Million Subscribers, from a high of 24 Million in 2016, how does TPG Capital turn that around?

They do not have to nor probably intend to turn it around. They made their purchase after projecting the loss in subscribers over the number of years they expect to keep the business, did the numbers as to how much money they would net over those years, and then assigned a purchase price that met their investment return criteria.

 

[HipKat]

Say what you will about Charlie, but once again he has pulled another rabbit out of his hat. And DISH again is in a good place. And like I have been saying since this now failed deal was announced, I predict it will ultimately buying DISH buying DIRECTV.

Lesson learned is once again never count Charlie out.

Good so I can go back to predicting the same!

 

[HipKat]

I hate to be the person at TPG Capital that engineered the deal, Well we came close to buying both Satellite TV companies and only lost $2 Billion in doing so.

Somewhere in an unemployment line.....

 

[nelson61]

while digging through the financial notes, --- EchoStar reported the current progress payments for their new satellite under construction - As of end of 3rd quarter - around 95 million dollars.

 

[CSM]

while digging through the financial notes, --- EchoStar reported the current progress payments for their new satellite under construction - As of end of 3rd quarter - around 95 million dollars.

Why are they wasting money on this when even DTV sees streaming is the future?

 

[nelson61]

Because the Dish satellite business is still a good business that will be making money for many more years

 

[Bruce]

Why are they wasting money on this when even DTV sees streaming is the future?

Except streaming has not shown to be their future.

Stream and by Internet together barely have a Million subscribers, the main reason why….price, why subscribe when you can get YTTV for a less expensive price.

The other factor, when people leave Cable/Satellite TV, the vast majority do not subscribe to a Streaming Live TV service, here-

Just 29.2% of New Cord Cutters Subscribe to a Live TV Service Like Fubo & YouTube TV | Cord Cutters News

One of the questions cable TV executives often ask is how many cord cutters can they get to subscribe to a live TV streaming service like YouTube TV, Hulu, or Fubo. Now, thanks to a report from MoffettNathanson, we have an idea of how many subscriber who cancel cable TV switch to a live TV […]

cordcuttersnews.com

 

[navychop]

The other factor, when people leave Cable/Satellite TV, the vast majority do not subscribe to a Streaming Live TV service, here-

I would have to expect that does not include Amazon Prime. Which has pretty much every household, whether they use the video portion or not.

 

[CSM]

Except streaming has not shown to be their future.

Stream and by Internet together barely have a Million subscribers, the main reason why….price, why subscribe when you can get YTTV for a less expensive price.

The other factor, when people leave Cable/Satellite TV, the vast majority do not subscribe to a Streaming Live TV service, here-

Just 29.2% of New Cord Cutters Subscribe to a Live TV Service Like Fubo & YouTube TV | Cord Cutters News

One of the questions cable TV executives often ask is how many cord cutters can they get to subscribe to a live TV streaming service like YouTube TV, Hulu, or Fubo. Now, thanks to a report from MoffettNathanson, we have an idea of how many subscriber who cancel cable TV switch to a live TV […]

cordcuttersnews.com

I was saying that about DTV because they don't advertise for satellite anymore. They promote being able to get DTV without a dish on the roof.

 

[b4pjoe]

I was saying that about DTV because they don't advertise for satellite anymore. They promote being able to get DTV without a dish on the roof.

Yeah for the same price as satellite with fewer channels but yeah it is all worthwhile just because you don’t have a satellite dish. They are delusional.

 

[Bruce]

I would have to expect that does not include Amazon Prime. Which has pretty much every household, whether they use the video portion or not.

That number has nothing to do with Amazon Prime or any other steaming service like Disney/Paramount+ .

What it says, people leaving Satellite/Cable TV, about 55 million since 2017, the vast majority are not signing up for a replacement Live TV streaming service.

If 29.2% of those who left (55M) sign up for Streaming Live TV, that is 16.06M people, which is pretty close to how many have a Live TV Service.

YTTV-over 8 Million Subscribers
Hulu Live-over 4 Million
Sling-2 Million
Fubo-1 million
DirecTV Stream/by internet-1 Million

That is 16 Million, not perfect math, but pretty close.

 

[ncted]

I would have to expect that does not include Amazon Prime. Which has pretty much every household, whether they use the video portion or not.

Pretty sure Amazon is considered SVOD, not Live streaming, despite having some Live events, like NFL.

 

[CSM]

What if DTV merged DTV via the Net and Stream, they would have the option of paying the ARF, RSN and Gemini Air fees after the first one being free per month? However, how many customers would opt to pay those fees to get the Gemini Air?

 

[N6BY]

... Not until July 2026.

Kicking the can down the road.

 

[telstar_1]

can the sats be used for something other than dbs?

 

[comfortably_numb]

can the sats be used for something other than dbs?

Some of the Dish sats can be used for regular KU transmissions. Not sure about this one, though.

 

[b4pjoe]

What if DTV merged DTV via the Net and Stream, they would have the option of paying the ARF, RSN and Gemini Air fees after the first one being free per month? However, how many customers would opt to pay those fees to get the Gemini Air?

Both already have those fees. They are just hiding them in the higher package prices on Stream. So if they merged the two services which package price would they go with?

 

[CSM]

Both already have those fees. They are just hiding them in the higher package prices on Stream. So if they merged the two services which package price would they go with?

I know you have said you think the normal prices for DTV via Net would probably be what the regular price for Satellite is. However, it will be interesting to see what they really are once the people that signed up for DTV via Net will really pay once the two-year price lock expires, and they would post their reactions, especially if the plan to cancel depending on how much they go up? I think that will be in April of 2025, right?