Steve Mehs
11-01-02, 04:24 AM
As expected, and confirming what has been reported for weeks, the Justice Department said it will block the merger between EchoStar and DirecTV, a move that could be the final blow to the effort to combine the nation's No. 1 and No. 2 satellite TV operators.
On Oct. 10, the Federal Communications Commission said it will fight the proposed billion-dollar merger. But it gave the companies 30 days to come up with a revised merger plan that aims to alleviate concerns about the combination.
A statement from Hughes Electronics, parent of DirecTV, said the company will consult with Echostar to determine the next steps in their merger process.
"We are disappointed with both the Department of Justice and Federal Communications Commission views on this merger," Hughes said. "We continue to believe that this transaction would provide significant benefits to consumers and would be in the best interest of our shareholders."
EchoStar issued a statement from CEO Charlie Ergen, but wouldn't comment beyond the quote - including whether the company would continue pursuing the merger. "We continue to believe passionately that the merger of EchoStar and Hughes is the best chance to stop rising cable prices and to bring enhanced services to all Americans, especially those consumers living in rural America," Ergen said.
"We are obviously disappointed that at this time we have not been able to convince regulatory officials to share our vision. EchoStar will continue to explore all possible means to be allowed to compete against the cable giants and for more choice for all consumers," he said.
From SkyReport (http://www.skyreport.com/skyreport/nov2002/110102.shtm#one) (Used with Permission)
On Oct. 10, the Federal Communications Commission said it will fight the proposed billion-dollar merger. But it gave the companies 30 days to come up with a revised merger plan that aims to alleviate concerns about the combination.
A statement from Hughes Electronics, parent of DirecTV, said the company will consult with Echostar to determine the next steps in their merger process.
"We are disappointed with both the Department of Justice and Federal Communications Commission views on this merger," Hughes said. "We continue to believe that this transaction would provide significant benefits to consumers and would be in the best interest of our shareholders."
EchoStar issued a statement from CEO Charlie Ergen, but wouldn't comment beyond the quote - including whether the company would continue pursuing the merger. "We continue to believe passionately that the merger of EchoStar and Hughes is the best chance to stop rising cable prices and to bring enhanced services to all Americans, especially those consumers living in rural America," Ergen said.
"We are obviously disappointed that at this time we have not been able to convince regulatory officials to share our vision. EchoStar will continue to explore all possible means to be allowed to compete against the cable giants and for more choice for all consumers," he said.
From SkyReport (http://www.skyreport.com/skyreport/nov2002/110102.shtm#one) (Used with Permission)