Whether the deal goes through or BK happens, we will be sc--wed. I expect most of us to be jobless soon.
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Yup. It's going to happen no matter what happens with this deal. Get that resume ready and start applying.
When could layoffs happen?
You are correct. People will be laid off in mass. Up to 60% of all Dish employees, and replaced in line by those at DTV.
Because the deal is so shrouded in legalese it's hard to figure out exactly what is happening.
They have not actually sold the TV business yet - just announced a plan to sell it. That plan could be derailed by either 1) bondholders rejecting it (they have to agree to replace their existing bonds with new ones for 1.5bn less in principal value) or 2) federal regulators blocking the deal.
My understanding is that TPG has another part of the deal where they are lending echostar 2.5 bn to make the November payments anyway (with typical corporate credit terms - there's defined collateral and an interest rate), and that part of the deal is independent of whether the merger actually goes through. If I'm correct there, then a November bankruptcy is unlikely. Even with selling the TV video, remaining Echostar will still have 10 bn dollars of debt to deal it - and have to figure out how to make a profit without the video subs going forward - so while they'll have a little more runway, a bankruptcy in 2026-2028ish still seems like a real possibility
Of course, some companies come through bankruptcies with few layoffs; and plenty of companies have large layoffs even when they're financially healthy, so it's kind of a moot point
How can it be a BK. Didn’t dish get money for selling the tv side dish?
Likely. And that su-ks.
But at least you aren't a 70+ year old whose crowing achievement is running a billion dollar business into the ground with your arrogance, defaulting and then spending your last few years on this earth getting to live with the knowledge of what happened.
I guess he can still fog a mirror and feel good about that.