10-30-01, 06:34 AM
EchoStar Communications Corp. might have agreed to buy its top U.S. rival satellite TV provider, General Motors' Hughes Electronics unit, for $31.4 billion in stock, cash and assumption of debt, but the companies are a long way away from closing the transaction.
Under a deal announced late Sunday evening, EchoStar would own 91% of the total U.S. satellite TV market, a number that has many concerned that the deal won't pass muster with antitrust officials.
Charlie Ergen, CEO of the current and future EchoStar, firmly believes that the joint venture will clear regulatory hurdles. He's counting on antitrust officials to view the merged company as part of a broader multichannel market that includes cable operators. In fact, EchoStar has agreed to pay General Motors $600 million in breakup fees if the deal fails.
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Under a deal announced late Sunday evening, EchoStar would own 91% of the total U.S. satellite TV market, a number that has many concerned that the deal won't pass muster with antitrust officials.
Charlie Ergen, CEO of the current and future EchoStar, firmly believes that the joint venture will clear regulatory hurdles. He's counting on antitrust officials to view the merged company as part of a broader multichannel market that includes cable operators. In fact, EchoStar has agreed to pay General Motors $600 million in breakup fees if the deal fails.
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