DirecTV cancels agreement to merge with Dish Network

(CNN)– DirecTV is backing out of a proposed deal with EchoStar to buy rival Dish Network.

The deal hinged on Dish bondholders exchanging their debt for new debt in the merged company at a discounted rate.

It would have cost them about $1.5 billion, but the creditors rejected that last week.

Under the proposed deal DirecTV would have paid $1 in cash but assumed nearly $10 billion in debt.