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Liberty’s John Malone Urges Ergen to Merge Dish With DirecTV


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#1 OFFLINE   Athlon646464

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Posted 11 July 2013 - 10:43 AM

Liberty’s John Malone Urges Ergen to Merge Dish With DirecTV
 
Liberty Media Corp. Chairman John Malone urged fellow billionaire Charlie Ergen to combine Dish Network Corp. with DirecTV to get the advantages of bigger bulk in the pay-TV business.
 
“It would be good if DirecTV could combine with Echo or Dish or whatever Charlie calls it now just because scale economics in the media business drives down costs and makes it possible for larger investment,” Malone said in an interview at the Allen & Co. conference in Sun Valley, Idaho. “You need larger -- I’m not saying monopoly players -- but you need larger players.”
 
Dish, based in Englewood, Colorado -- across the street from Liberty Media -- retracted its offers to buy Sprint Nextel Corp. and Clearwire Corp. in June, leaving Ergen to contemplate his next move after long saying a DirecTV merger could interest him. Dish split from EchoStar Corp., a satellite-TV equipment manufacturer, in 2008. Ergen is chairman of both companies.
 
 
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#2 OFFLINE   nmetro

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Posted 11 July 2013 - 12:49 PM

Let's see, John Malone and Charlie Ergan, the two most profit hungry, customer offending, CEOs, in the pay TV busines,s wants DISH to take over DirecTV. So to  to turn it into a reincarnation of TCIATT/COMCAST (that is what they were called locally) and DISH Network. I guess this is the adage; it it's fixed; break it.

 

Experiencing TCI and DISH first hand, I am glad I moved to DirecTV. If this does happen, a lot of people, including myself, will find other alternatives.



#3 OFFLINE   sregener

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Posted 11 July 2013 - 01:30 PM

I think a merger would be bad for consumers.  Sure, we could argue that most people have cable as an option, but most people with satellite say that satellite service offers more channels for a lower cost.  Thus, the two satellite providers are competing with each other for the same type of customer.  This leads them to differentiate their services and seek to be the better provider.  And while nmetro would be looking for other alternatives for his service, I'd be in the same boat if I was forced to use DirecTV's hardware again.



#4 OFFLINE   Curtis0620

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Posted 11 July 2013 - 01:35 PM

I will look elsewhere before I use the inferior Hopper.

 

I will not give up 5 tuners for 3.


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#5 OFFLINE   Athlon646464

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Posted 11 July 2013 - 01:35 PM

It sounds like a possible Sirius / XM type situation.........


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#6 OFFLINE   joshjr

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Posted 11 July 2013 - 01:52 PM

I think a merger would be bad for consumers.  Sure, we could argue that most people have cable as an option, but most people with satellite say that satellite service offers more channels for a lower cost.  Thus, the two satellite providers are competing with each other for the same type of customer.  This leads them to differentiate their services and seek to be the better provider.  And while nmetro would be looking for other alternatives for his service, I'd be in the same boat if I was forced to use DirecTV's hardware again.

 

I think you are missing the point of the article.  If Dish & DirecTV merged they would reach more customers than any provider out there.  That means when it comes time to negotiate a new fee per channel DirecTV/Dish would be in the drivers seat as each company would lose alot more customers if any station went dark.  Can you imagine if something like Ney York locals were shut off for DirecTV & Dish?  It affects the TV stations owners more drastically.  the more customers they lose the more money they lose.


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#7 OFFLINE   yosoyellobo

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Posted 11 July 2013 - 02:25 PM

Let's see, John Malone and Charlie Ergan, the two most profit hungry, customer offending, CEOs, in the pay TV busines,s wants DISH to take over DirecTV. So to  to turn it into a reincarnation of TCIATT/COMCAST (that is what they were called locally) and DISH Network. I guess this is the adage; it it's fixed; break it.
 
Experiencing TCI and DISH first hand, I am glad I moved to DirecTV. If this does happen, a lot of people, including myself, will find other alternatives.


If I ever have to leave Directv, it would not be for any other provider. Living on a fix income I could use an extra $1500 or so a year.

#8 OFFLINE   damondlt

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Posted 11 July 2013 - 03:21 PM

What makes you guys think Dish would be in charge of anything?

 

No where did I read anything about Dish Buying Directv.

 

Dish is the one that Needs the Merger, Not Directv!


 

 

 


#9 OFFLINE   joshjr

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Posted 11 July 2013 - 03:37 PM

What makes you guys think Dish would be in charge of anything?

 

No where did I read anything about Dish Buying Directv.

 

Dish is the one that Needs the Merger, Not Directv!

 

I kind of thought the same thing.


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#10 OFFLINE   harsh

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Posted 11 July 2013 - 03:46 PM

I think you are missing the point of the article.  If Dish & DirecTV merged they would reach more customers than any provider out there.

If you had been paying attention, you would already know that DIRECTV and DISH are both already in the top three of the multi-channel television providers.

Malone is one of the two most media merger/acquisition oriented people on the planet; the other being Rupert Murdoch. Both have had their fingers in DIRECTV at one time or another.

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#11 OFFLINE   joshjr

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Posted 11 July 2013 - 03:55 PM

If you had been paying attention, you would already know that DIRECTV and DISH are both already in the top three of the multi-channel television providers.

Malone is one of the two most media merger/acquisition oriented people on the planet; the other being Rupert Murdoch. Both have had their fingers in DIRECTV at one time or another.

 

I was paying attention.  Like I said, it would give the company more leverage in negotiations if all customers were under one company.


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#12 OFFLINE   damondlt

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Posted 11 July 2013 - 03:58 PM

I was paying attention.  Like I said, it would give the company more leverage in negotiations if all customers were under one company.

If I was Directv, I would tell Charlie too bad. I'd rather sit back and watch Dish die!


 

 

 


#13 OFFLINE   harsh

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Posted 11 July 2013 - 10:46 PM

I was paying attention.  Like I said, it would give the company more leverage in negotiations if all customers were under one company.

At the same time, imagine how much discomfort there would be to come to an agreement with programmers that are pissy with one or the other of the individual players.

 

As a customer, it is better to have multiple choices than having to default.  Competition keeps everyone sharp and trying harder.

 

I've never been all that convinced that DIRECTV was particularly earnest in their interest to merge.


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#14 OFFLINE   Stewart Vernon

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Posted 11 July 2013 - 10:47 PM

Multiple thoughts:

 

1. Charlie wanted to buy/merge with DirecTV years ago...  the government didn't like the idea so it was squashed.

 

2. The bigger company isn't always the "winner"...  AOL bought Time-Warner years ago and AOL was most certainly not a larger entity... K-Mart was in bankruptcy when they bought/merged with Sears, and it was K-Mart that initiated/orchestrated the takeover.

 

So...  while I find the idea of a merger unlikely given the recent past...  there's no reason to believe Dish isn't just as likely to be on top of the merged company... OR perhaps a co-CEO scenario where they share the top spot.

 

From a consumer perspective... I would expect things to be pretty transparent.  Neither company could afford wholesale replacing the other company's hardware... so for years the current suite of satellites would probably work just as they do... but customers of both might suddenly get a whole bunch of new channels after a merger AND be less likely to lose channels in any future disputes with programming providers.  It is really hard to see a Dish/DirecTV merger as anything but good for existing customers... but I doubt it is coming any time soon.


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#15 OFFLINE   JoeTheDragon

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Posted 11 July 2013 - 11:35 PM

Multiple thoughts:

 

1. Charlie wanted to buy/merge with DirecTV years ago...  the government didn't like the idea so it was squashed.

 

2. The bigger company isn't always the "winner"...  AOL bought Time-Warner years ago and AOL was most certainly not a larger entity... K-Mart was in bankruptcy when they bought/merged with Sears, and it was K-Mart that initiated/orchestrated the takeover.

 

So...  while I find the idea of a merger unlikely given the recent past...  there's no reason to believe Dish isn't just as likely to be on top of the merged company... OR perhaps a co-CEO scenario where they share the top spot.

 

From a consumer perspective... I would expect things to be pretty transparent.  Neither company could afford wholesale replacing the other company's hardware... so for years the current suite of satellites would probably work just as they do... but customers of both might suddenly get a whole bunch of new channels after a merger AND be less likely to lose channels in any future disputes with programming providers.  It is really hard to see a Dish/DirecTV merger as anything but good for existing customers... but I doubt it is coming any time soon.

can they use each bandwidth with out a LNB change?

 

can dish and or directv boxes work on each others system with just some new software?

 

Can they use an muiltswtich setup to join both dish and directv LNBs?


I want CLTV / CLTV HD on direct tv.

#16 OFFLINE   inkahauts

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Posted 12 July 2013 - 02:55 AM

can they use each bandwidth with out a LNB change?
 
can dish and or directv boxes work on each others system with just some new software?
 
Can they use an muiltswtich setup to join both dish and directv LNBs?


Not at all. They use totall differnt encryption techiniques. Their birds are set up different in terms of how they are arranged to deliver programing to customers.. They'd have to move all of one companies subscribers to the others if they wanted to be able to double their bandwidth. Reality is the synergies would be in costs of programing negotiations, not in gaining tons of bandwidth. Not for a very very long while.

I just don't see much of any upside for DIRECTV in a merger. Not sure there is one for dish either.

#17 OFFLINE   tonyd79

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Posted 12 July 2013 - 09:41 AM

I was paying attention.  Like I said, it would give the company more leverage in negotiations if all customers were under one company.

 

How big is big enough to have leverage? They are already big enough for leverage. How big do you need to be? Do you think the biggest system gets better deals? Doesn't really work that way. Most of the big systems get equal deals.

 

And that leverage works two ways. It also works with customers. Perfect in Malone's vision of the world. Leverage to buy cheap and sell high.

 

No thanks. Keeping Dish and DirecTV, both with there respective strengths and weaknesses as well as their market specialties is much better for all in the long run.

 

It is not like either company is in bad shape.


Edited by tonyd79, 12 July 2013 - 09:43 AM.

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#18 OFFLINE   Paul Secic

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Posted 12 July 2013 - 10:20 AM

It would not go well with the government anyway.


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#19 OFFLINE   joshjr

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Posted 12 July 2013 - 10:29 AM

Not at all. They use totall differnt encryption techiniques. Their birds are set up different in terms of how they are arranged to deliver programing to customers.. They'd have to move all of one companies subscribers to the others if they wanted to be able to double their bandwidth. Reality is the synergies would be in costs of programing negotiations, not in gaining tons of bandwidth. Not for a very very long while.

I just don't see much of any upside for DIRECTV in a merger. Not sure there is one for dish either.

 

I guess for Dish it would be adding sports (Sunday Ticket) and a box with 5 true tuners that can be used on any channel.  For DirecTV it would be maybe some additional HD channels as well as betting sling capabilities.


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#20 OFFLINE   joshjr

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Posted 12 July 2013 - 10:30 AM

How big is big enough to have leverage? They are already big enough for leverage. How big do you need to be? Do you think the biggest system gets better deals? Doesn't really work that way. Most of the big systems get equal deals.

 

And that leverage works two ways. It also works with customers. Perfect in Malone's vision of the world. Leverage to buy cheap and sell high.

 

No thanks. Keeping Dish and DirecTV, both with there respective strengths and weaknesses as well as their market specialties is much better for all in the long run.

 

It is not like either company is in bad shape.

 

Wouldn't Wal-Mart be a perfect example of that?  Do you not think they get a better deal? 


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