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FreeRepublic , LLC PO BOX 9771 FRESNO, CA 93794
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Posted on 01/20/2003 10:40:12 PM PST by HAL9000
NEW YORK -- EchoStar Communications Corp. Chairman Charles Ergen, recently blocked by federal regulators from acquiring his main rival in the U.S. satellite-television market, has been talking with long-standing adversary Rupert Murdoch as well as Liberty Media Corp. about possibly selling his company, industry officials familiar with the contacts told The Wall Street Journal.There haven't been any formal negotiations, Mr. Ergen isn't commenting on his motives and it isn't clear what response these preliminary feelers have sparked. EchoStar currently has a market capitalization of $12.4 billion and debt of about $5.7 billion.
The surprising twist could indicate that the EchoStar chief is worried about his long-term ability to compete against players with deeper pockets, better access to programming and world-wide reach. He tried to attain that last year with an $18 billion bid for Hughes Electronics Corp. (GMH) and its DirecTV satellite unit but was shot down by federal regulators on antitrust grounds. Mr. Murdoch is now interested in acquiring DirecTV as part of his U.S. expansion plans.
People familiar with the matter say Mr. Ergen also had a similar contact with executives of Liberty Media, controlled by cable-TV mogul John Malone.
A headstrong entrepreneur, Mr. Ergen built EchoStar's Dish Network into the country's second-largest direct-to-home satellite service with eight million subscribers, compared with 11.2 million U.S subscribers for DirecTV.
For years, he has decried accelerating consolidation among cable-TV providers and global media companies. But he now appears to have at least opened the door to joining that trend.
EchoStar didn't dispute that it has been engaged in discussions with the pair of media powerhouses, but it isn't clear which side made the overture. In a brief statement, EchoStar said it "continues to focus its efforts on maintaining its leadership position in the cable and satellite industry. Obviously our board of directors would be required to consider any firm proposal that would benefit our shareholders." A company spokesman said Mr. Ergen wasn't available for comment.
Spokesmen for Mr. Murdoch's News Corp. and Liberty Media also declined to comment.
Wall Street Journal Staff Reporters Andy Pasztor, John Lippman and Martin Peers contributed to this article.
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FreeRepublic , LLC PO BOX 9771 FRESNO, CA 93794
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