EchoStar (Dish Network) Shares Up on Talk of DirecTV Acquisition

Teleclick ^ | July 20, 2006

[HAL9000]

Shares of America’s #2 satellite television provider, EchoStar Communications, have hit 17-month highs in recent days amid speculation that leading rival, DirecTV Group Inc., could try to purchase the company.

Such a merger would likely face regulatory and antitrust hurdles, but many analysts believe that these problems would be relatively easy to overcome. After all, the combined entity could be a strong competitor in the triple play communications industry, now increasingly polarized between cable and telecom carriers.

The decision to merge with DirecTV would rest solely with Charlie Ergen, EchoStar’s Chairman, CEO, and co-founder, who currently controls more than 90% of the company’s voting shares.

“Charlie has three choices. He can be acquired by DirecTV (or) AT&T or do a leveraged buyout and take the company private,” commented Kaufman Bros. analyst, Todd Mitchell, in a recent interview. “If he takes the company private, he still hasn’t done anything about his competitive position.”

In recent years, EchoStar has been on a slow but steady decline, unable to attract enough new customers to maintain financial sustainability. It is becoming increasingly clear to analysts that EchoStar will have a hard time staying both independent and profitable in this highly competitive and volatile industry.

[greyfoxx39]

I love DISH! Have had it for about 6-7 years now...when we moved we tried Comcast for a few months, and I couldn't wait to get back on DISH, especially for the menus. In all the time we have had it, we have had zero, zilch problems with the picture, or with customer service. Once in a great while, we will lose signal during a heavy rainstorm, but it doesn't snow much here. Just bought new receivers and I like the search function on it.

Where we live, we are able to get internet only from CableOne for a reasonable price, and have noticed no problem with the speed...and have recently switched to Vonage, saving money on both internet and phone.

[bwteim]

You mean you are not TIVO'ing them??

;)

[gondramB]

>>The problem is that they don't have MPEG4, which will be required for the new HD channels.

I've got two SD DirecTiVos, so I'm good on that.<<

That's gonna be an issue. I hate to say it but if Comcast really comes through with MPEG4, more HD channels and a deal with Tivo I might have to reconsider...

One of the problems with high def is similar to the early days of CD when you could hear hiss on the CDs - the hiss was an artifact from the master tapes.

Well now you are seeing compression artifacts because of old compression standards in spite of having a new HD system...

[gondramB]

>>My HD DVR from TWC can record 2 shows at once as well. TiVo is not the only DVR with that feature.<<

Right. But DirecTV has the only box with the various patented non-duplicatable Tivo features that also records two things at once.

[FreedomPoster]

Ditto on the Comcast thing, and yes, agree on the SD on HD issues.

[upier]

Early reports on the new HR20-700 HD DVR are favorable.