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Rumor -- Direct to Acquire Echostar

Discussion in 'General DISH™ Discussion' started by Nick, Jul 17, 2006.

Do you think Dish Network and DirecTV should merge?

  1. Yes

    0 vote(s)
  2. No

    108 vote(s)
  3. Not sure

    201 vote(s)
  4. Don't care

    31 vote(s)
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  1. Nick

    Nick Retired, part-time PITA DBSTalk Club

    Apr 23, 2002
    Speculation of a merger rising at industry
    conferences and in news accounts.

    Washington, D.C., July 17, 2006 -- What's the hottest rumor in television today?

    Satcasters DIRECTV and EchoStar will soon announce a merger.

    A deal joining the nation's top satellite TV services has been speculated about for
    months. However, the rumors have suddenly escalated in the last few weeks with
    reports coming from last week's Allen & Co. media and technology conference in

    "Also floating through the mountain air was the perpetual rumor about a buyout
    of EchoStar, the satellite television company owned by Charles W. Ergen, who
    also attended the conference," The New York Times reported.

    And a Reuters news article last week quoted Wall Street analysts as saying that
    the upcoming presidential election in '08 could spur a wave of mergers (including
    DIRECTV-EchoStar) due to concerns that a Democratic administration would be
    less likely to approve them. ...

    More @ TVPredictions.com
  2. Richard King

    Richard King Hall Of Fame

    Mar 25, 2002
    Yogi was right. ;)
  3. Earl Bonovich

    Earl Bonovich Lifetime Achiever

    Nov 15, 2005
    Oh boy... Here we go again.
  4. philhu

    philhu Cool Member

    Jun 19, 2006
    Wasn't this Kabashed a few years ago by the FTC?
  5. Geronimo

    Geronimo Native American Potentate DBSTalk Gold Club

    Mar 23, 2002
    Eureka! My time machine works.
  6. bjflynn04

    bjflynn04 Hall Of Fame

    Jul 27, 2004
    No because D* and E* dropped it before it got to the point where the merger could be approved or not.
  7. Geronimo

    Geronimo Native American Potentate DBSTalk Gold Club

    Mar 23, 2002

    Not quite. Both the FCC and DoJ had to approve the merger. The FCC which normally waits until after DoJ acts disapproved the merged. At that point DISH chose to drop the matter. That set off a round of negotiations about the penalty clause in the merger agreement.


    I am skeptical that this merger will be looked at any any differently---if this report is reliable.
  8. Chris Blount

    Chris Blount Creator of DBSTalk Staff Member Administrator DBSTalk Gold Club

    Jun 22, 2001
    I was going to mention this on the home page but then I realized that the article was written by Phillip Swann. Mr. Swann tends to write stuff like this just to gain attention. While his analysis is interesting, it's nothing more than pure speculation at this point.

    On the other hand, speculation can be fun. :)
  9. Adam Richey

    Adam Richey Hall Of Fame

    Mar 25, 2002
    Kokomo, IN
    I'm intrigued by the possibility, and if the FCC can continue to ignore the Philadelphia CSN situation, surely it can approve a buyout if the seller and buyer switch places. LOL
  10. Bill R

    Bill R Hall Of Fame

    Dec 20, 2002
    I also tend to distrust anything written by Phillip Swann. He posts a lot of stuff just to drive traffic to his web site.

    But, as Chris said, "speculation can be fun". Let's see if anything comes out ot this or if this is just more PS (Phillip Swann) BS.
  11. FTA Michael

    FTA Michael Hall Of Fame

    Jul 21, 2002
    The difference here would be that Fox, broadcaster to millions and proud supporter of our government and its appointees, would be in favor of the merger. Last time, Fox was dead-set against the merger.
  12. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

    Apr 17, 2003
    If the headline was "Charlie Ergen buying DirecTV" I could understand. That exclusive Sunday Ticket has lead a lot of people to buy a subscription.

    I spent a day recently with a guy who was absolutely sure that D* and E* were already owned by the same people and that they used the exact same satellites. I didn't want to start a war so I let it go.

    The FCC has not changed it's stance on the issue. It would be foolish to try again.
  13. Greg Bimson

    Greg Bimson Hall Of Fame

    May 5, 2003
    Unlike the Adelphia situation, where hundreds of incumbent cable monopolies under the control of either Adelphia, Time Warner or Comcast, were being reorganized into two companies with monopoly franchising, any issue for a DirecTV and Dish Network merger will most likely face the same problem as it did before: lack of competition in the multichannel marketplace, and in some instances a monopoly for many rural areas.

    The FCC and FTC do not like to create monopolies.
  14. Mark Holtz

    Mark Holtz Day Sleeper DBSTalk Club

    Mar 23, 2002
    Sacramento, CA
    It would be interesting. You could put the East Coast feeds on 101, West Coast feeds on 119, and single feeds on 110. But, I think the focus now is getting High-Def on the air.
  15. James Long

    James Long Ready for Uplink! Staff Member Super Moderator DBSTalk Club

    Apr 17, 2003
    With the current fleet of satellites it would be a blessing and a curse. D*'s Phase III stacking trick would need to be broken if more of 110° was opened to D* customers. Duplicated spotbeams could be used for HD locals (instead of D* ka and E* 129/61.5). But who's technology wins? Do you replace millions of E* receivers with D* recievers?

    It would probably be best to go full bore MPEG-4 on a combined system.
  16. PDR

    PDR Mentor

    Jul 14, 2003
    Did anyone else see the story in today's LA Times business section about the Allen & Co. conference in Sun Valley? One of the active rumors is that Rupert and Charlie are negotiating the sale E* to Direct. Rupert feels that the FCC will approve this time because of the fact that Comcast and TW gobbled up Adelphia and the entry of the local telcos into the tv business. Anyone else have any knowledge on this matter.

  17. foghorn2

    foghorn2 AllStar

    Jun 17, 2006
    If this happens, I'll go back to cable!
  18. hankmack

    hankmack Legend

    Feb 8, 2006
    I doubt that will happen. I doubt the FCC would allow a monopoly control the only source of TV for rural America.
  19. tnsprin

    tnsprin Hall Of Fame

    Mar 15, 2003
    Since they wouldn't allow the sale of Directv to Echostar, it would be real strange if the allowed the reverse.

    Sounds like a silly rumor.
  20. Slamminc11

    Slamminc11 Hall Of Fame

    Jan 27, 2005
    was enough to jump the stock $1.80+ per share. Keep the rumors coming!
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