John Corn
01-29-03, 12:54 PM
In a strange and unexpected way, Charlie Ergen's EchoStar Communications is winning the domestic satellite derby, at least perceptually, for now.
After losing his bid to take over dominant rival DirecTV late last year, it seemed as though Mr. Ergen had nowhere to go but out. Conventional wisdom has been that Rupert Murdoch's News Corp. and its 20 percent owner Liberty Media Corp.'s anticipated second bid for DirecTV would steamroll past him, leaving his pure-play domestic satellite operation at a distinct disadvantage. And that may still occur.
But for now, EchoStar appears to be benefiting from the renewed
DirecTV hubbub that is now in full swing. The recent speculation that Mr. Ergen has approached News Corp. about partnering with or buying EchoStar -- however outrageous or untrue -- contributes to the distraction and delay of a renewed bidding process that already is off to a slower-than-expected start.
Media executives who know Mr. Ergen and Mr. Murdoch will say there is no way the two could ever so amicably do business. Some speculate that Liberty's consummate deal-making chairman, John Malone, is making behind-the-scenes moves. Liberty and News Corp. declined comment. Underscoring the heaps of bravado at work in such discussions or speculation, a source close to the situation said Mr. Ergen would not settle for anything less than $60 a share even if he were selling. Mr. Ergen, whose company's stock has been trading around $25 a share, could not be reached for comment.
While Mr. Ergen manages to keep Wall Street and his competitors wondering about his intentions, his company clearly has been hustling. If EchoStar looks good these days, it is due to its strong financial performance, analysts say.
Rest of the Story (http://www.emonline.com/deals/012703dicolumn.html)
After losing his bid to take over dominant rival DirecTV late last year, it seemed as though Mr. Ergen had nowhere to go but out. Conventional wisdom has been that Rupert Murdoch's News Corp. and its 20 percent owner Liberty Media Corp.'s anticipated second bid for DirecTV would steamroll past him, leaving his pure-play domestic satellite operation at a distinct disadvantage. And that may still occur.
But for now, EchoStar appears to be benefiting from the renewed
DirecTV hubbub that is now in full swing. The recent speculation that Mr. Ergen has approached News Corp. about partnering with or buying EchoStar -- however outrageous or untrue -- contributes to the distraction and delay of a renewed bidding process that already is off to a slower-than-expected start.
Media executives who know Mr. Ergen and Mr. Murdoch will say there is no way the two could ever so amicably do business. Some speculate that Liberty's consummate deal-making chairman, John Malone, is making behind-the-scenes moves. Liberty and News Corp. declined comment. Underscoring the heaps of bravado at work in such discussions or speculation, a source close to the situation said Mr. Ergen would not settle for anything less than $60 a share even if he were selling. Mr. Ergen, whose company's stock has been trading around $25 a share, could not be reached for comment.
While Mr. Ergen manages to keep Wall Street and his competitors wondering about his intentions, his company clearly has been hustling. If EchoStar looks good these days, it is due to its strong financial performance, analysts say.
Rest of the Story (http://www.emonline.com/deals/012703dicolumn.html)