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.