11-07-01, 11:24 AM
With last week's announcement of a proposed merger between EchoStar Communications and DirecTV, cable operators say they must act aggressively to stave off the challenge of a consolidated satellite TV colossus with 17 million subscribers.
General Motors-owner of Hughes Electronics, the parent of DirecTV-announced the merger after EchoStar chief Charlie Ergen put up $2.75 billion of his own equity in the company to guarantee the $23 billion bid. Ergen was considered a long shot when he first made a bid for DirecTV last summer. But he was awarded the prize when the rival bidder, News Corp.'s Rupert Murdoch, grew impatient and withdrew his bid as the Hughes and GM boards weighed Ergen's proposal.
The deal will face intense scrutiny from regulators in Washington. The combined company would have more customers than AT&T Broadband, which with 16 million subscribers is the largest cable operator.
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General Motors-owner of Hughes Electronics, the parent of DirecTV-announced the merger after EchoStar chief Charlie Ergen put up $2.75 billion of his own equity in the company to guarantee the $23 billion bid. Ergen was considered a long shot when he first made a bid for DirecTV last summer. But he was awarded the prize when the rival bidder, News Corp.'s Rupert Murdoch, grew impatient and withdrew his bid as the Hughes and GM boards weighed Ergen's proposal.
The deal will face intense scrutiny from regulators in Washington. The combined company would have more customers than AT&T Broadband, which with 16 million subscribers is the largest cable operator.
To read the rest please click HERE (http://www.inside.com/product/product.asp?entity=CableWorld&pf_ID={6658FA7E-37B6-4237-901E-9E1A482D4D2D})