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DirecTV Abandons Dish Acquisition After Bondholders Reject Proposal


DirecTV has terminated its deal with EchoStar to acquire Dish DBS following bondholders' opposition to the debt-exchange proposal.

EchoStar stock previously plunged 13% last week on the news that bondholders of subsidiary Dish Network rejected a proposed debt deal seen as key to sealing a merger with satellite rival DirecTV. While regulators thwarted previous attempts at a combination on anti-competitive grounds, the ravages of cord-cutting have left both players smaller and less dominant, thereby making approval this time arguably more likely. Dish and EchoStar merged in January and the combined company has pursued a telco-oriented strategy, steering away from pay-TV in a bid to challenge establish players AT&T, Verizon and T-Mobile.

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