Report: DBS Merger in Jeopardy?

According to USA Today, the proposed EchoStar/DirecTV merger may be running into trouble as it enters the home stretch.

The national newspaper reported this week that the newest sign that the deal could be in jeopardy is that the Justice Department has been deposing satellite retailers, programmers and others opposed to the combination of the two companies.

"The staff is preparing to litigate" to block the merger, Legg Mason's Blair Levin told USA Today. He said that while "it's often true that they prepare to litigate and then say 'yes,' generally speaking, it's not a good sign."

Others told the newspaper that antitrust officials will at least insist on concessions, especially on price and control over programming. But that led some to wonder how flexible EchoStar CEO Charlie Ergen will be in talks between the two sides, USA Today said.

In response to the article, EchoStar spokesman Marc Lumpkin said, "We have a high degree of confidence in the integrity of the FCC and the Department of Justice process and that they will make the correct decision for the American consumer. At this point, it's clear that our competitors are engaging in uninformed, premature speculation."

From SkyReport (Used with Permission)