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.

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.

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.