AT&T is selling its 70% stake in DirecTV in a seismic deal for the satellite television world that will make the combined provider the biggest pay-TV provider in the U.S.
Under the terms of the transaction, DirecTV will acquire Dish from its owner EchoStar Corp. for a nominal consideration of $1 plus the assumption of about $9.75 billion of Dish debt, according to a statement on Monday that confirmed previous Bloomberg News reporting.
The deal is contingent upon Dish’s bondholders agreeing to take a haircut on the principal amount of the company’s debt of at least $1.568 billion, the statement shows.
DirecTV is owned by AT&T Inc. and joint-venture partner TPG Inc. In connection with Monday’s deal, TPG will acquire the 70% stake in DirecTV that it doesn’t already hold from AT&T in a $7.6 billion cash transaction. AT&T paid $67 million for DirecTV in 2015.