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.