(Reuters) - Satellite TV provider DirecTV said on Tuesday it will abandon its planned acquisition of EchoStar's ( SATS ) satellite television business that includes Dish TV by Nov. 22 if bondholders don't agree to a debt exchange.

A group of Dish bondholders on Monday rejected the proposed debt-exchange offer from DirecTV that was contingent upon them accepting a "haircut" of $1.5 billion.

"A successful exchange was a condition for acquiring the Dish video business," a DirecTV spokesperson told Reuters in an emailed statement.

"Given the outcome of the EchoStar ( SATS ) exchange, DirecTV will have no choice but to terminate the acquisition of Dish by midnight on Nov. 22."

EchoStar ( SATS ) and Dish did not immediately respond to Reuters requests for comment.

The proposed deal, initially announced in September, was seen as a strategic consolidation in a shrinking pay-TV market as both DirecTV and Dish face intensifying competition from streaming services.

As part of the two-step transaction, DirecTV was to pay $1 to buy the pay TV business called Dish DBS that includes Dish and Sling TV, while agreeing to assume about $9.75 billion of Dish's debt. Dish and DirecTV launched an exchange offer at a discounted rate for the debt to help extend the maturities.

The deal will provide a crucial lifeline to EchoStar ( SATS ), which was co-founded by telecommunications entrepreneur Charlie Ergen and is currently saddled with more than $20 billion in debt.

(Reporting by Surbhi Misra in Bengaluru; Editing by Subhranshu Sahu)