DirecTV notified EchoStar Corp. of its intention to terminate an acquisition of Dish Network Corp. after bondholders failed to consent to a key debt exchange, all but killing a deal to create the largest US pay-TV service.

A tie-up meant to help struggling satellite-TV companies fell apart after creditors balked at a proposal to cut into their holdings.

Echostar ( (SATS) ) just unveiled an update. EchoStar Corporation’s planned sale of its Pay-TV business to DIRECTV has been called off after DIRECTV terminated the agreement due to unmet conditions. The acquisition,

EchoStar stock plunged on the news that bondholders of Dish Network rejected a proposed debt deal seen as key to sealing a merger with DirecTV.

DirecTV was looking to acquire Dish TV and Sling TV from its owner, Englewood-based EchoStar, in a debt exchange transaction that included a payment of $1, plus the assumption of approximately

U.S. satellite TV provider DirecTV said on Thursday it had terminated its agreement to acquire Echostar's satellite television business, which includes rival Dish TV, over a failed debt-exchange offer.

DirecTV has notified EchoStar Corp. of its intention to terminate an acquisition of Dish Network Corp. after bondholders failed to consent to a key debt exchange, all but killing a deal to create the largest US pay-TV service.

DirecTV had forecast that the combination could generate cost synergies of at least $1 billion per year. The deal was seen as more likely to get regulatory approval amid the rise of streaming services and the decline of pay-TV subscribers due to cord-cutting.

After months of negotiations, DIRECTV announced that it has terminated its deal to acquire DISH DBS, the parent company of DISH, and its streaming service, Sling TV, in a multi-billion dollar debt-saving deal.