Dish /Direct Merger Hits A Roadblock

[nelson61]

The name mashups can be confusing.

DIRECTV is buying EchoStar DBS

EchoStar DBS is the "front end" business that sells internet and satellite streaming to the end user.

EchoStar Corporation has the frequency licences and owns or leases the satellites (among other businesses).
The KU spectrum is coveted with SpaceX and others trying to crowd into the assigned DBS frequencies for satellite to customer streaming with EchoStar screaming " Interference, Interference, We have priority rights".

There are a number of other "EchoStar" subsidiaries - an accountant's delight.

 

[harshness]

EchoStar DBS is the "front end" business that sells internet and satellite streaming to the end user.

This is likely something they did to make it separable.

 

[HipKat]

Try TPG. That is who bought DISH...not TPS.

I typo'd that and didn't catch it

 

[dvrexpander]

Lol this makes me laugh mainly because of those people that jump back and forth every 2 years riding promos. They won't be able to abuse the system no more.

Downside is I don't like Direct one bit so as long as the hardware stays the same, as long as they don't keep jacking pricing up and give me good deals from time to time I'll stay around however I think the days are numbers and off to the high seas I go.

 

[Bruce]

Lol this makes me laugh mainly because of those people that jump back and forth every 2 years riding promos. They won't be able to abuse the system no more.

Plenty of other competition now, which makes that a moot point.

 

[Peter Parker]

direct should just ride the storm out and let dish go broke then buy everything for pennies on the dollar

Do you think that no one would object to that?

 

[MikeD-C05]

Do you think that no one would object to that?

Hell, they got all of DISH and Sling TV for $1.00. Plus all that 9 billion in DISH's debt.

 

[harshness]

Hell, they got all of DISH and Sling TV for $1.00. Plus all that 9 billion in DISH's debt.

DIRECTV spent a whole lot more than $1 already on DISH. There's the matter of the $2+ billion injection of cash to meet the bond obligations.

People really need to get over the $1 novelty as it is misleading.

 

[b4pjoe]

DIRECTV spent a whole lot more than $1 already on DISH. There's the matter of the $2+ billion injection of cash to meet the bond obligations.

People really need to get over the $1 novelty as it is misleading.

I would think TPG has built in protection for the $2 billion payment like if the sale doesn't go through Echostar would have to pay them back. If not than TPG is dumber than I thought.

 

[harshness]

I would think TPG has built in protection for the $2 billion payment like if the sale doesn't go through Echostar would have to pay them back. If not than TPG is dumber than I thought.

Reasoning what should be isn't reasonable. It comes down to how badly TPG wants to get into the wallets of DISH subscribers.

You may remember the screwing that DIRECTV gave DISH on the previous DISH-initiated merger attempt.

 

[MikeD-C05]

DIRECTV spent a whole lot more than $1 already on DISH. There's the matter of the $2+ billion injection of cash to meet the bond obligations.

People really need to get over the $1 novelty as it is misleading.

TPG , who runs both Directv and DISH, gave the $2.5 billion to Charlie for his November debt payment. I am well aware of that and even have the news story book marked on my computer. So if you add the $9 billion in DISH debt to the $2.5 billion for Charlie Ergen, TPG is $11.5 billion in the hole now, from buying DISH and Sling TV for that $1.00.

 

[NYDutch]

DIRECTV spent a whole lot more than $1 already on DISH. There's the matter of the $2+ billion injection of cash to meet the bond obligations.

People really need to get over the $1 novelty as it is misleading.

Exactly... It's common practice for contracts and deeds to include "For one dollar and other good and valuable consideration" as the price. The "other good and valuable consideration" is documented as a separate negotiation.

 

[harshness]

I am well aware of that and even have the news story book marked on my computer.

Yet even with all of that information at your disposal, you perpetuate the "news" that TPG is only spending $1 for DISH.

 

[John2021]

Do you think that no one would object to that?

there objecting now!!!

 

[Bruce]

Some News-

"DirecTV has no intention of restructuring terms," wrote a DirecTV lawyer, according to the Financial Times (subscription required). The publication reported that DirecTV's owner TPG is not willing to change the terms of its acquisition of EchoStar's video distribution business, which includes the Dish satellite TV and Sling streaming TV units. The deal to acquire those divisions was announced last month.

The Financial Times reported that the two sides are now at an impasse, raising the prospect of DirecTV terminating the deal by November 9, per the terms of the transaction.

The development comes as no surprise, however. Securing the Dish-DirecTV agreement among EchoStar's creditors was "far from guaranteed," Bloomberg reported last month.

Basically, still no agreement with some of the creditors/bondholders, since they are not pleased with the new terms.

EchoStar's Dish gambit continues to face challenges

EchoStar's woes include challenges to its DirecTV transaction, an ongoing departure of its wireless executives and regulatory complaints filed by competitors.

www.lightreading.com

 

[nelson61]

There will be threats, hysterics, and huffing and puffing right up to the drop dead date.
Again, this deal appears to be the debtee's best alternative.

 

[MikeD-C05]

So November 9th there might be a complete termination of the Deal with Directv and what happens then? Dish debt $9 billion goes back to Charlie and with it the two video systems: DISH /Sling Tv? What about the $2.5 billion given to Ergen from TPG? Will that too go back to TPG and Charlie gets screwed for his Nov. debt payment that is due? Next month should be exciting to see.

 

[b4pjoe]

So November 9th there might be a complete termination of the Deal with Directv and what happens then? Dish debt $9 billion goes back to Charlie and with it the two video systems: DISH /Sling Tv? What about the $2.5 billion given to Ergen from TPG? Will that too go back to TPG and Charlie gets screwed for his Nov. debt payment that is due? Next month should be exciting to see.

I would think the Nov. 9 date was put there for a reason...being that the November debt payment won't be released to Echostar until after that date.

 

[MikeD-C05]

I would think the Nov. 9 date was put there for a reason...being that the November debt payment won't be released to Echostar until after that date.

That makes sense. So if it isn't released to Charlie he is screwed for his November debt payment and he will regain his DISH sat and Sling TV again. So bankruptcy?

 

[b4pjoe]

That makes sense. So if it isn't released to Charlie he is screwed for his November debt payment and he will regain his DISH sat and Sling TV again. So bankruptcy?

Who knows? They were headed in that direction before the deal was announced though.