News and Reviews....

Dish - Direct TV Merger    November  2001

Yes folks, its true. The Dish Network has stayed at the table long enough to be the only one left in the plan to merge the remaining two satellite dish companies. As of November 5th Echostar the parent company of the Dish Network has submitted a bid of 32 billion for the Hughes Electronics parent of the Direct TV satellite company.

Echostar would gain 10.3 million satellite subscribers, bringing their total to 16.7 million subscribers, the largest competitor to cable service MSOs. Larger then the largest (AT & T Broadband) MSO by 3 Million subscribers. The combined company would control 90 percent of the DBS market and 17 percent of the broader pay TV market.

The deal is not totally in the bag yet. It has to pass some steep hurdles, from the (FCC) Federal Communication Commission, (FTC) Federal Trade Commission and the Department of Justice.

News Corporation, the other bidder, chose to leave the bargaining table. This maybe a strategy to come back if and when the package is turned down by the powers that be, with a lower salvage bid.

None the less, Direct TV and Echostar  face steep D.C. hurdles in the coming year. Stay tuned... more to come.