Steve Mehs
10-29-02, 04:29 AM
According to analysts watching the DirecTV/EchoStar merger, Cablevision's effort to gain EchoStar-controlled orbital slots and other assets - something EchoStar hopes will alleviate regulator concern about the big satellite TV combination - isn't going to be enough for the troubled deal.
Armand Musey, satellite analyst at Salomon Smith Barney, said after reading an outline of a preliminary proposal detailing the Cablevision/EchoStar concession, he said the deal revision doesn't come close to addressing strong merger objections from the Federal Communications Commission. "As a result, we continue to believe that the proposed merger will not be approved," he said.
Doug Shapiro, an analyst at Banc of America Securities, said there are many unanswered questions about the Cablevision proposal. Among his observations: It isn't clear how Cablevision could raise the necessary funding for its proposed DBS service, and it's unknown how the logistics of a service launch using EchoStar's technological platform would later migrate to its own platform.
"Without specifics, we believe it will be a steep uphill battle to convince regulators to rely on Cablevision as a sufficient structural remedy for several reasons," Shapiro said.
From SkyReport (http://www.skyreport.com/skyreport/oct2002/102902.shtm#two) (Used with Permission)
Armand Musey, satellite analyst at Salomon Smith Barney, said after reading an outline of a preliminary proposal detailing the Cablevision/EchoStar concession, he said the deal revision doesn't come close to addressing strong merger objections from the Federal Communications Commission. "As a result, we continue to believe that the proposed merger will not be approved," he said.
Doug Shapiro, an analyst at Banc of America Securities, said there are many unanswered questions about the Cablevision proposal. Among his observations: It isn't clear how Cablevision could raise the necessary funding for its proposed DBS service, and it's unknown how the logistics of a service launch using EchoStar's technological platform would later migrate to its own platform.
"Without specifics, we believe it will be a steep uphill battle to convince regulators to rely on Cablevision as a sufficient structural remedy for several reasons," Shapiro said.
From SkyReport (http://www.skyreport.com/skyreport/oct2002/102902.shtm#two) (Used with Permission)