Murdoch: Gov't Would Approve DirecTV/Echostar

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http://www.tvpredictions.com/murdoch072406.htm

Murdoch Talks DIRECTV-Echo Deal
The media mogul fuels speculation that DIRECTV and EchoStar will make a deal.
By Phillip Swann

Washington, D.C. (July 24, 2006) -- Rupert Murdoch, chairman of News Corp., says the federal government would likely approve a merger between EchoStar and the News Corp.-owned DIRECTV.

Speculation has risen in the last week that the two satcasters will merge. But some analysts have expressed doubt, noting that the federal government rejected a similar merger in 2002 on grounds that it would stifle competition.

However, Murdoch says the marketplace has changed, leaving consumers with a variety of video choices.

"There are so many alternatives, ways of getting pictures and information," Murdoch said last week on The Charlie Rose Show. "I think it would be much harder for the government to turn it down."

Murdoch did not say if the two companies are in talks, but his comments have fueled talk that a deal could be forthcoming.

Still, Murdoch cautioned that a merger could be difficult because EchoStar CEO Charlie Ergen might insist on running the company "at least for awhile."
Murdoch did not say if he would oppose that arrangement.

Murdoch's News Corp. and Ergen's EchoStar planned to merge in 1997 but the deal fell through when Ergen clashed with News Corp. executives prior to its completion.

DIRECTV and EchoStar helped fuel merger speculation this month when they teamed up to bid in next month's U.S. auction of wireless airwaves. And last March, Mike Palkovic, DIRECTV's chief financial officer, told an industry conference that his company was interested in buying EchoStar.

Swanni Sez:
Murdoch's comments suggest that the merger is indeed possible. The 75-year-old media mogul would have never publicly suggested that a deal would be approved by the feds unless he was interested in pursuing one. He seems to be laying the groundwork for a lobbying campaign in DC in case DIRECTV and EchoStar are able to make a deal.

However, you also can't dismiss Murdoch's cautionary comments about Ergen. He could be sending a message to Charlie that the deal could fall apart if he keep insisting on control.
 
Congress hates Charlie, therefore his deal dies due to monopoly concerns.

Congress loves Rupert, hence his deal may succeed in spite of monopoly concerns.

Regardless, Charlie may see Fios coming down the road to kill him, and figure this is a good time to bail. We'll see....
 
So what's the consensus on this forum? Does D* taking over E* mean good news or bad news for HD enthusiasts?
 
As an E* subscriber, I would see it as a BAD thing. Prices would most definitely increase and who knows what would happen to quality? Of course the additional satellites would seem to bode well for picture quality (after deleting some duplicate channels), but I am more concerned of D* "screw what the customer wants" mentality (i'm referring to HD-Lite).

Other than Indian customer support reps, I have been, for the most part, happy with E*. It seems they are really trying to push this little thing we call HD.
 
Just based on capacity alone, it would seem to be a good deal. As with any deal, one hopes they take the best of both companies, rather than the worst. One scenario marries up the technical innovation of E* (i.e. HD DVR boxes) with the marketing innovation of D* (i.e. Exclusivity of Sunday ticket). The other marries the high package prices of D* (Basic packages start @ 42 vs. $29) with the brinksmanship negotiating strategies of E* (No MASN in D.C., taking CBS and Lifetime off the air at various times).

If recent history provides and insight, I think a merger of two companies of this size and reach can only lead to disaster (i.e. CBS / Viacom, Spring / Nextel, AT&T / anyone else). While I'm sure there are a few mega mergers that have worked out, the majority end up losing site of the goals in trying to meet Wall Street's lofty expectations. Hopefully, no merger will happen, and competition can still be the benefit to consumers that it is today.
 
I have basically lived in the country since 1991, so no cable since then. I was looking forward to "cable in the sky" when D finally went into business, then I saw the prices, a basic RCA receiver for almost $500 a two receiver system for $750 and the sub rates practically the same as cable in town. So I did without until E signed on, they came out with a $500 deal but it included the 1st years sub so I went with that.
I was against E taking over D and I am against D taking over E. For those of us outside town without cable, there is not a realistically viable alternative.
I know Rupert was not in charge of D back then but watching him over the years, he will hardly take a stutter step to raise rates and cost of equipment (purchase or lease).
Unfortunately, he may be able to pull off this merger. He paid off the politicians for his quickie US citizenship so he could buy the television stations to start FOX.
Before you start bashing one or the other service you best remember the consumers need both of these services to be in business.
 
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My concern is more with HD. My one and only cable provider doesn't even do HD. My ONLY options for HD content are D* or E*.

So, tell me again why a merger wouldn't be a monopoly?
 
The argument didn't work for Charlie and it wouldn't pass for Rupert UNLESS the Republicans are SO enamored with him that they would give him anything he wanted.

Which is admittedly a possibility.....
 
After this November there is a good chance that The Democrats will take over control of the congress. Look at the president and congress 's low approval ratings. When they do take over congress again, I doubt that they will approve any mergers in favor of people like big business- Rupert. So unless Rupert can talk Charlie into a merger/buyout deal by October -highly unlikely, and then get it passed through the Fcc and other government entities by January- highly unlikely , we will not see this come to pass .
 
I'm hoping things move back to the center around this country. The neocons killed my party..... Here's to hoping that saner heads get back into power
 
MikeD-C05 said:
After this November there is a good chance that The Democrats will take over control of the congress. Look at the president and congress 's low approval ratings. When they do take over congress again, I doubt that they will approve any mergers in favor of people like big business- Rupert. So unless Rupert can talk Charlie into a merger/buyout deal by October -highly unlikely, and then get it passed through the Fcc and other government entities by January- highly unlikely , we will not see this come to pass .

Balance of power is what makes our gov't the best of the best.
 
Rupert's memory must be fading, a merger was just shot down 3 years ago. All this speculation and talk about it happening again is a waste of time.
 
Chris Walker said:
Rupert's memory must be fading, a merger was just shot down 3 years ago. All this speculation and talk about it happening again is a waste of time.

And telcos weren't offering video 3 years ago. The competitive landscape has radically changed.
 
maybe when the 3rd satellite service, that was rumored on this site a month ago gets going.
it might make the E*& D* merger closer to reality.
I HOPE NOT!
 

A thread to rant about "HD-Lite"

Customer disservice!!

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