EchoStar Chief Says Satellite Deal Will Move Forward

**bruce** · 03-17-2005 04:20 PM

The only reason I am posting this over here is because this is about Rainbow-1
fredfa posted this at AVS:
EchoStar Chief Says Satellite Deal Will Move Forward
By Jay Sherman TVWeek.com March 17, 2005

EchoStar Communications Chairman Charlie Ergen said Thursday he is confident that the planned purchase of Cablevision's lone satellite by EchoStar will go forward despite speculation that Cablevision Chairman Charles Dolan might be trying engineer a scuttling of the sale.

"The only thing preventing us from acquiring that satellite is not getting [Federal Communications Commission] approval." Mr. Ergen said during an analyst call to discuss EchoStar's 2004 financial results. "We intend to move forward with the transaction." He added that he expects approval within three to six months.

EchoStar and Cablevision in February reached an agreement under which EchoStar was to pay $200 million for Rainbow 1, a satellite used in Cablevision's struggling satellite business Voom.

The sale agreement took place against the backdrop of an internal fight at Cablevision over whether to fund Voom. Cablevision Chairman Charles Dolan has lobbied for continued Cablevision backing, while his son, CEO James Dolan, has sought to shut down the service. However, both sides have agreed to give Charles Dolan until March 31 to obtain financing for Voom, and some analysts have suggested Charles Dolan might try to cancel the sale of the satellite to EchoStar in order to ensure continuity of service.

And there has been News stories about Mr.Dolan flying to Colorado to see Ergen to get the bird back or lease it back, again as I, and everyone else have said, why would Charlie Ergen help Charles Dolan, it is not in his nature, based on past actions.

**jbphoenix** · 03-17-2005 04:37 PM

Originally Posted by bruce

.

And there has been News stories about Mr.Dolan flying to Colorado to see Ergen to get the bird back or lease it back, again as I, and everyone else have said, why would Charlie Ergen help Charles Dolan, it is not in his nature, based on past actions.

Charlie Ergen don't even want to help his customers, much less anyone who might be in competition with him!

**GreatMac** · 03-17-2005 04:47 PM

Originally Posted by bruce

..."The only thing preventing us from acquiring that satellite is not getting [Federal Communications Commission] approval."...

Ah, but this just may be enough

If the FCC decides that it is in the consumers' interest to preserve the only real HDTV competitor (Voom), this will throw a wrench in Charlie's plan.

The Big Two (D* and E*) have clearly been reluctant to invest in HDTV and without serious competition will likely remain so for the foreseeable future (but will keep making vague promises about leading the way to 500+ HD channels).

I hope the FCC is as serious about letting the consumer be able to see HDTV, as it is about preventing us from seeing JJ's nipple.

**gutter** · 03-17-2005 04:53 PM

Or Charlie and chuck have made a deal for a lease so that the sale will go through and HD can be made available to all...including DISH subs. Wild speculation? You bet it is.

**BFG** · 03-17-2005 05:02 PM

The FCC wont block it and require cablevision to continue to lose money when they want out of the business. And Charles E* wont do anything with Dolan that causes Ergen to lose money. Ergen is strictly a profit-only guy, and a smart and rich man for that approach...

**LunkHead** · 03-17-2005 05:07 PM

I would imagine that Dolan was not that dumb and that his (Dolan's) lawyers probably put some type of exit clause in the sale contract.... This is just speculation on my part but I can't see the deal being as closed as some may think.....

**bruce** · 03-17-2005 05:13 PM

3/17 E* Earnings call:
HDTV is a strategic advantage for DBS companies. DirecTV is being more aggressive with it, while Dish is approaching it from a financial standpoint, and whether it will make them money.

This is also in Sean's sig, and at the last Charlie Chat 4 days ago he reminded everyone that watched it that the deal was for the bird and he said no for the Voom programing.
If he did want to carry more HD, he does not need Voom for that, he could carry UniversalHD, MaxHD, etc anytime he wants, to him, the Voom programing means 40,000 subs, which to him means no money.

**bruce** · 03-17-2005 05:16 PM

Originally Posted by LunkHead

I would imagine that Dolan was not that dumb and that his (Dolan's) lawyers probably put some type of exit clause in the sale contract.... This is just speculation on my part but I can't see the deal being as closed as some may think.....

Charles Dolan had nothing to do with the sale, James Dolan did, and the sale agreement is in a SEC report, the only way out is if both E* and Cablevision agree to cancel it.

**GreatMac** · 03-17-2005 05:36 PM

Originally Posted by BFG

The FCC wont block it and require cablevision to continue to lose money when they want out of the business...

But it may block it if the HDTV business (Voom) is spun off and sold to Dolan Sr., who wants it to stay in business.

Then the argument that the sale is detrimental to consumers may have a bite.