Ergen prepared to abandon the merger

If Charlie Ergen and EchoStar don't get from regulators what they need for their merger with DirecTV, then they are prepared to scuttle the $26.8 billion deal, the CEO said.

Ergen, in comments he gave to the Washington Post this week, said he will abandon the proposed merger, which would combine small dish operations for both companies, if EchoStar doesn't get a key regulatory ruling on the deal. The Post said the first critical step in winning over regulators would be approval from the Justice Department, which is looking at antitrust concerns involving the merger.

In addition to the Justice Department, the Federal Communications Commission is studying the proposed transaction.

If the Justice Department rules that an EchoStar/DirecTV combination would create a monopoly, "We wouldn't pursue the merger in that case," Ergen told the Post. "It would be game, set, match. I wouldn't approve the deal."

From <a href="http://www.skyreport.com" target=none>SkyReport</a> (Used with permission)

Hard to read Ergen's comments at any time. He chooses his words very carefully. However, his words may be nothing more than publically issuing a face-saving smoke screen wrapped in good citizenship - as in recognizing that if the merger fails to win regulatory approval, he'll magnanimously refuse to carry through with it. That's tellin' 'em, Charlie!

What else would Charlie say? If the merger doesn't get approved, he has no choice but to scrap the deal. We know he only wants the companies to merge - not to run 2 separate companies. I'm confused - please explain how this makes him smart. If anything, he's giving himself an out by saying "If the deal doesn't go through, then *I'M* not going through with it." Umm, Charlie, this has nothign to do with whether or not *you* approve with it. What a dork.

I think it means as opposed to fighting a negative ruling for years upon years. "Say yes and we go forward. Say no and I won't fight it."

You can bet if it is a negative ruling and Rup doesn't jump back in, there's going to be a fire sale!

See ya
Tony

I agree with Tony. Ithink it also means that if too severe of restrictions or concessions are placed on the new E*, then Charlie will pull out of the deal.

I don't know what Charlie Ergen ever did to some of you guys, but a lot of people jump all over him no matter what he says or does.

If the merger doesn't go through Charlie would still get Hughes share of PanAmSat. My question is would he still want it and why? Could he possibly use PanAmSat capacity to expand operations into Mexico or Canada? Or is there an orbital position that they own that could be licensed for DBS operation?