Echo (Dish) wants to buy DirecTV® [Archive] - Lounge0101 Discussion Forum

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To The Real King!!

September 28th, 2000, 07:52 PM

Hi Everyone,

Look at this news article. Wouldn’t that be nice. I think everyone in the Industry likes Dish networks Charlie Ergan a lot better than the corporate and litigious DirecTV®.

What a pleasure this would be and it would probably get prices in line too.

EchoStar signals interest in buying DirecTV parent

NEW YORK -- EchoStar Communications Corp. chairman and CEO Charlie Ergen said Thursday that his company could be among the possible buyers should General Motors Corp. decide to put DirecTV parent Hughes Electronics Corp. up for sale. The future of Hughes, its DirecTV service and rival satellite broadcaster EchoStar were repeated topics of discussion during the Satellite Broadcasting and Communications Assn.'s SkyForum conference in New York Thursday.

"There is no combination of companies that would unleash as much value," Ergen said of a possible bonding of DirecTV and EchoStar's DISH Network. "Don't write that we are buying Hughes, but we do see lots of synergy." Ergen said the cost savings that would be generated by combining the direct broadcast satellite services would reach "tens of billions of dollars" because of efficiencies in satellite and uplink costs and the lack of satellite exclusivity premiums for programming.

The services are expected to have a combined 16 million subscribers by the end of the year. DirecTV is the larger service, as its service is beamed into almost 10 million homes. Rupert Murdoch's News Corp. has already had talks with GM about Hughes. News Corp. is expected to make an aggressive play for the company should the auto giant decide to sell or seek a strategic partner.

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Thanks & Good Luck,

<a href="mailto:ttrk@legal-rights.org">To The REAL King!!</a>

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RiseStar

September 28th, 2000, 11:16 PM

I have also heard that News Corp. has plans to enter a bid as well.

Wouldn't that be convient, as they would not have to pay the penalties if their Hu card is compromised...

To The Real King!!

September 30th, 2000, 08:38 PM

Hi Rise,

Yes wouldn’t that be convenient. But if they owned it they would have to pay either way and THEN they might try for some real security if they have the ability. If they do buy it then BEST thing they could do is engage a USEFUL company who CAN do REAL security :)

I sure hope its Charlie Ergan though between those two. Charlie CARES about satellite dealers while NDS seem to care about no-one but NDS.

I know of no company in this industry that is more hated than NDS.

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RiseStar

September 30th, 2000, 09:40 PM

Hi TTRK,

I really can't blame people for hating NDS, would you like working with this man? :)

http://www.pirateden.com/den/murdock.jpg

I am told that this flattering photograph was taken on the day that Rupert learned the H card had been hacked :)

To The Real King!!

October 1st, 2000, 02:16 PM

:D:D:D

I understand that his companies are also subject to investigation in Israel for Income tax infringement.

They were raided again for that recently.

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To The REAL King!!
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October 1st, 2000, 02:27 PM

I would rather see the more down home Charlie take over the game...Rupert...errr doesnt that guy own enough stuff hehehehe, it would be a rather odd thing to see either try to purchase DTV but I imagine thier would be complaints on monopolies etc. if this was to happen...heard other news within 3 weeks decisions will get heavier on this.

Charlie does this mean better picture quality for DISH?

DR7

October 1st, 2000, 02:42 PM

"There is no combination of companies that would unleash as much value," Ergen said of a possible bonding of DirecTV and EchoStar's DISH Network. "

THAT "VALUE" is for stockholder's.aluding to the possibility of buying is sure to get some interest in those speculating on this merger and some investing in the companies.

it seem's to me that the us govt. wouldn't approve of this sale.
it'll create a monopoly,in the long term the customer will pay more,a lot of people would lose job's,they'll close offices which will effect other people and services.

where's the benefit to the consumer?

RiseStar

October 1st, 2000, 05:57 PM

I would imagine that if echo was to buy it , it would raise some eyebrows at the justice department.

Antitrust lawyers love seeing these kind of acqusitions

Future Antitrust victims :)

simple

October 2nd, 2000, 12:20 PM

DENVER, Sept 27 (Reuters) - EchoStar Communications Corp. (DISH.O) has not lost interest in competitor DirecTV despite steps on Wednesday by News Corp. Ltd. that appear to put it in a stronger position to bid for the satellite broadcaster, an EchoStar spokeswoman said.

"We knew that was going to happen," Judianne Atencio said, referring to the announcement by Rupert Murdoch's News Corp. (NWS.N) it would become the top shareholder in Gemstar-TV Guide International Inc. (GMST.O) as part of a deal with Liberty Media Group (LMGa.N).

Analysts have said the stronger link with Liberty Media would put News Corp. in a better position to bid for DirecTV parent Hughes Electronics Corp. (GMH.N), a unit of General Motors Corp. (GM.N). GM is expected to put Hughes up for sale within months, while News Corp has extensive satellite assets in Europe and Asia.

Englewood, Colo.-based EchoStar, with 4.3 million customers, recently said a merger with DirecTV would make sense and allow a merged company to create efficiencies.

For instance both EchoStar and DirecTV, which has 8.7 million customers, provide local station programming in the same 30 plus markets, Atencio said.

But while EchoStar believes a merger with DirecTV would make economic sense, the U.S. government might not agree, according to a former senior counsel in the Justice Department.

"The companies would take a line that this is a 'no brainer,' but they would have to show that they would need to merge in order to survive effectively," Phil Weiser, a law professor at the University of Colorado and former senior counsel in the U.S. Justice Department, said.

Weiser, who worked in the anti-trust division, said the Justice Department would take a careful look at such a proposed merger because "there are so few entities""in the multichannel business.

He said a merger of two broadcast satellite companies would mean the new company would "be a pure distribution play" while a purchase of DirecTV by News Corp. would be mixing programme content with distribution.

He said the broadcast satellite companies would be in a slightly stronger position than Sprint and MCI WorldCom who said they needed to merge to better compete with AT&T Corp.. This is because the satellite broadcasters have only about 15 per cent of their market, while Sprint and WorldCom had about a 30-35 per cent share of the long-distance market against AT&T's 50 per cent.

Sprint and WorldCom called off their proposed merger on July 13 in the face of stiff regulatory opposition.

Weiser said the other thing to keep in mind is that the Justice Department could say no to all proposed mergers.