EchoStar Mulls Splitting Itself In Two

[Richard King]

http://www.nasdaq.com//aspxcontent/newsstory.aspx?textpath=20070925%5CACQDJON20070925 0657DOWJONESDJONLINE000181.htm&cdtime=09%2F25%2F2007%20+6%3A57AM
In a bid to unlock shareholder value, EchoStar Communications Corp. (DISH), the provider of television services via satellite, said it is mulling whether to split itself into two publicly traded companies.

The goal: to unlock value that investors might have missed up to now.

Under the plan, the Englewood Colo., company's U.S. satellite-TV business, DISH Network, would continue to operate within EchoStar, while its other technology and infrastructure assets would be spun off to holders.More...

[boba]

This would make a lot of sense. Charlie would be able to pawn off DISH to at&t and stiil keep some toys to play with.

[FTA Michael]

From the NY Times http://dealbook.blogs.nytimes.com/2007/09/25/echostar-eyes-spin-off-as-it-bids-for-sling-media/ :

Last month, Mike McCormack, an analyst at Bear Stearns, suggested in a research report that AT&T could acquire EchoStar and use its satellite network to deliver video instead. He ran the numbers assuming a takeover price of about $50 for EchoStar — or $22.8 billion in total — and concluded that such a deal would reduce AT&T’s earnings per share in the first year but would be neutral, or add to them, after that.

EchoStar’s shares rose more than 5 percent in early trading Tuesday, to $43.53.
Or maybe DirecTV is interested in going for a merger?


And from London's Financial Times http://www.ft.com/cms/s/0/54e2fbf2-6b5e-11dc-863b-0000779fd2ac,dwp_uuid=e8477cc4-c820-11db-b0dc-000b5df10621.html :

EchoStar has faced fears that it, and DirectTV, will struggle to compete with the other new entrants to the pay-TV market, including telecommunications providers who are offering services bundling together internet, phone and television in cut price packages.

[tomcrown1]

Dish the new AT&T now were I have heard that?

[Hound]

If the DVR business goes into a separate company, in the long run, it
could mean higher prices for Dish TV subs. By splitting the businesses,
the business model would be to increase the combined bottom line of
each business over the current bottom line. The TV sub business and the
DVR business would have the same common interest in expanding subs, but
each business would have to generate its own revenue, and would have to
make independent decisions in the best interests of a different set of
stockholders.

[Zero327]

If the DVR business goes into a separate company, in the long run, it
could mean higher prices for Dish TV subs. By splitting the businesses,
the business model would be to increase the combined bottom line of
each business over the current bottom line. The TV sub business and the
DVR business would have the same common interest in expanding subs, but
each business would have to generate its own revenue, and would have to
make independent decisions in the best interests of a different set of
stockholders.

Mmmm. The CSRs would have to grow a spine and start using the word "no". Things change when you no longer have a blank check to make stupid financial decisions. This could be fun.