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Guest Message by DevFuse

EchoStar's deal for DirecTV offers promise for cable

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2 replies to this topic

#1 Guest__*

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Posted 07 November 2001 - 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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#2 Guest__*

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Posted 07 November 2001 - 02:48 PM

Seven years ago cable said they weren't worried about DBS, that was 17,000,000 subscribers ago and now they still say the same thing. Yes DBS will have VOD and other high tech services and they will be able to provide these at a lower cost than cable. Remember not only does Echstar get Directv but they also get Directv DSL and DirectWay.Now let's see what cable says when DBS hits the 30,000,000 mark in a few years.

#3 Guest__*

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Posted 08 November 2001 - 07:00 AM

Cable would SAY everythings great its a spin doctor thing...

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