DirecTV is calling off its planned acquisition of Colorado-based rival Dish after the offer was rejected by bond holders at that company. The deal was reliant on Dish bond holders agreeing to trade in the debt they held for debt in the new company, a swap that would have cost them about $1.6 billion, collectively. The retreat by DirecTV this week may end a years-long effort by the company to acquire both Dish and Sling after it announced the bid in September. 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 $9.8 billion in debt. The deal was contingent on several factors, including regulatory approvals and bondholders writing off debt related to Dish. “While we believed a combination of DirecTV and Dish would have benefited all stakeholders, we have terminated the transaction because the proposed exchange terms were necessary to protect DirecTV’s balance sheet and our operational flexibility,” DirecTV CEO Bill Morrow said in a statement. The prospect of a DirecTV-Dish combo has long been rumored, and reported talks resurfaced over the years. And the two almost merged more than two decades ago — but the Federal Communications Commission blocked the deal valued at the time at $18.5 billion deal, citing antitrust concerns. Related Articles Business | DirecTV may pull the plug on purchase of Colorado-based Dish Network Business | Colorado-based EchoStar cuts Dish Network and Sling loose so Boost Mobile can move forward Business | DirecTV buys Colorado-based Dish as satellite rivals hunker down against onslaught of streaming services The pay-for-TV market has shifted significantly since. As more and more consumers tune into online streaming platforms, demand for more traditional satellite entertainment continues to shrink. DirecTV says that it will continue to invest in next-generation streaming platforms and offer new packaging options while integrating content from live TV alongside direct-to-consumer services. AT&T purchased DirectTV for $48.5 billion back in 2015. But in 2021, following the loss of millions of customers, AT&T sold a 30% stake of the business to private equity firm TPG for $16.25 billion. The termination of the deal doesn’t impact TPG’s acquisition of the remaining 70% stake in DirecTV from AT&T for about $7.6 billion, which is expected to close next year. Get more business news by signing up for our Economy Now newsletter.