Merger could be terminated November 22nd

[b4pjoe]

So the $9.75 billion stays with Echostar - since the deal will be cancelled and the video business will also stay with Echostar.

Yes. Plus the extra debt that Echostar took on in September "EchoStar received $2.5 billion in financing in September to pay its upcoming debt maturity, and raised an additional $5.6 billion in financing as part of a series of financial transactions recently announced". So they added to their already enormous debt.

 

[Bruce]

Bruce I am not talking about that you are pointing out. I am talking about the original two-step deal that had TPG to taking the $9.75 billion in pre-existing DISH debt and for TPG to pay $1 to Echostar as well for the video businesses. What happens to that pre-existing debt that Charlie already had ? Stays on the books at Echostar

Yes, the debt stays with Echostar.

and does the DBS video business also go back to Echostar if the deal is cancelled?

Yes, Dish stays Dish, DirecTV stays DirecTV, I assume fully owned by TPG.

 

[Scott Greczkowski]

That what I always thought it was, have no idea why Harshness thought it was a non-refundable deposit.

Anyone that knows a little about how business is run, would never believe TPG just give away $2B like that.

It appears that what was done, and thats what I am told by my contacts as well.

That was part of the gamble for buying the company for $1.

 

[Bruce]

It appears that what was done, and thats what I am told by my contacts as well.

That was part of the gamble for buying the company for $1.

Then someone definitely needs to be fired.

 

[navychop]

I will try this again.

If the eleventh commandment is:
”Don’t get caught,” the twelfth MUST be:
NEVER BET AGAINST CHARLIE!

Folks, we THINK we know some stuff. But really- let us not second guess other folks that work in this field every day.

 

[navychop]

Then someone definitely needs to be fired.

Don’t you kinda figure there is something MORE to the story?

They are not stupid. We might learn the Rest of the Story. Or not. But nobody throws that money away. There’s something coming later. A gamble? Sure. But only with good odds, regardless of intermediate missteps.

 

[MikeD-C05]

Yes, the debt stays with Echostar.

Yes, Dish stays Dish, DirecTV stays DirecTV, I assume fully owned by TPG.

Thank you for your answer Bruce.

 

[MikeD-C05]

Yes. Plus the extra debt that Echostar took on in September "EchoStar received $2.5 billion in financing in September to pay its upcoming debt maturity, and raised an additional $5.6 billion in financing as part of a series of financial transactions recently announced". So they added to their already enormous debt.

Thanks for the answer. It all makes sense now, except TPG giving $2.5 billion loan that Echostar will have to repay back or not. They gambled and it looks like they lost in the deal. But TPG did get full ownership of Directv from ATT, so I guess that is something. But at 5000 sub loss a day and no replacement satellites on the horizon and old receivers from the 2010s, for Directv I don't see much of a future for the company. They have always been the highest priced for programming out of both DISH and DIRECTV. People are leaving both satellite and cable because they don't want to pay that much anymore and going with streaming. The future only looks worse for satellite TV.

 

[b4pjoe]

But TPG did get full ownership of Directv from ATT

They haven't yet. It may be another year for that deal to get approved. Most likely it will but these things don't happen overnight.

And yes both services are doomed in the long run. TPG must be gambling that their streaming service will carry the load when satellite becomes unprofitable. What they fail to understand is the price they charge for their streaming services is like a giant anchor that will eventually pull them under. Dish is gambling that being a wireless carrier will save them but that plan definitely has obstacles in their way too.

 

[Bruce]

They haven't yet. It may be another year for that deal to get approved. Most likely it will but these things don't happen overnight.

Correct, FCC, FTC and the Justice Department have to approve.

And yes both services are doomed in the long run.

That is for sure, everything changes, just 50-60 years ago, using a antenna and a 27” was a big deal.

TPG must be gambling that their streaming service will carry the load when satellite becomes unprofitable.

Good luck to them, because their two streaming services only has 1.5M combined at the most.

Uverse still has 2M, mostly because of agreements with multi-dwelling complexes .

That leaves 7.5M Satellite subscribers.

Also, with Dish’s 6M subscribers, shows the rural areas do not care about Satellite TV anymore, since there are 20 Million Households living in rural areas, the numbers mean, the majority there do not have Satellite TV any longer.

What they fail to understand is the price they charge for their streaming services is like a giant anchor that will eventually pull them under.

Yep, YTTV have over 8M, Hulu Live 4.6M, together, 14.6M, 13M more then the two DirecTV services combined.

Dish is gambling that being a wireless carrier will save them but that plan definitely has obstacles in their way too.

Time is running out, every quarter they lose customers and their new network is not getting even good reviews, the vast majority are negative.

 

[John2021]

MSN

dtv is scrapping the merger. kind of wondering if this is a tatical plan on dtv's part to let em go broke and move in and buy everything for pennies on the dollar?

 

[CSM]

-

They haven't yet. It may be another year for that deal to get approved. Most likely it will but these things don't happen overnight.

And yes both services are doomed in the long run. TPG must be gambling that their streaming service will carry the load when satellite becomes unprofitable. What they fail to understand is the price they charge for their streaming services is like a giant anchor that will eventually pull them under. Dish is gambling that being a wireless carrier will save them but that plan definitely has obstacles in their way too.

I agree I don't see how TPG will be able to make DTV via Net profitable. I guess they did when they bought it from AT&T?

 

[CSM]

I agree I don't see how TPG will be able to make DTV via Net profitable. I guess they did when they bought it from AT&T?

Sorry, I should have said in the second sentence of my post, I guess AT&T thought they would make a profit with streaming when they bought DTV and then created DTV Stream and DTV via the Net.

 

[glrush]

Pointless DirecTV, Dish Merger Already On The Edge Of Collapse

Culminating a deal that’s been rumored about for the better part of the last twenty years, Dish Network and DirecTV recently consummated a new merger in a doomed bid to try and remain solvent and r…

www.techdirt.com

 

[Bruce]

Pointless DirecTV, Dish Merger Already On The Edge Of Collapse

Culminating a deal that’s been rumored about for the better part of the last twenty years, Dish Network and DirecTV recently consummated a new merger in a doomed bid to try and remain solvent and r…

www.techdirt.com

That article had a link to a story about how Boost is really doing-

Boost Mobile says it’s a real wireless carrier now

MVNO no more?

www.theverge.com

 

[savarese04]

There is a name for that- I just don’t remember. Retired too long, I guess.

You are thinking of liquidation preference. Nicely done. Basically there is a waterfall by which creditors get paid back. If you're at the top of the list, awesome, if you're at the bottom of the list, sucks to be you.

 

[Yespage]

That article had a link to a story about how Boost is really doing-

Boost Mobile says it’s a real wireless carrier now

MVNO no more?

www.theverge.com

Does it? The article was quite vague and all I got was, 'Boost is making progress.'

 

[Yespage]

Does it? The article was quite vague and all I got was, 'Boost is making progress.'

And I'll add I've been using Boost Infinite for probably a couple years now and have been quite happy with the service... though it doesn't work well at Cleveland Playhouse Square.

 

[MikeD-C05]

So one more day and the merger is kaput.

 

[lordodogg]

Yep. It was fun while it lasted.