Vicaom Head Discusses Buying Echostar

Scott Greczkowski

Scott Greczkowski

Thread Starter
Welcome HOME to SatelliteGuys!
Staff member
HERE TO HELP YOU!
Sep 7, 2003
100,693
20,246
Newington, CT
(Note from Scott - How long have I been saying this would probably happen?) :D

http://washingtontimes.com/upi-breaking/20040310-095725-6133r.htm



Viacom head hints at buying EchoStar
clear.gif

twt-grey2.gif
NEW YORK, March 10 (UPI) -- A feud between media giant Viacom of New York and satellite broadcaster EchoStar may result in Viacom buying EchoStar.

Sumner Redstone, Viacom's head, signaled as much earlier this week in comments about Viacom's decision to pull some of its content from EchoStar, the Wall Street Journal reported Wednesday.

However, both Viacom and EchoStar were quick to deny specific buyout plans.

The feud has resulted in more than 9 million subscribers to EchoStar's Dish Network to lose access to several Viacom cable channels Tuesday, including MTV and Nickelodeon, and 1.6 million of them lost CBS.

Read the rest at http://washingtontimes.com/upi-breaking/20040310-095725-6133r.htm
 
T

tdigden

Well-Known SatelliteGuys Member
Dec 16, 2003
32
0
The only thing that makes me wonder about this is...if Viacom were serious about this...I would think they would just agree to the terms Dish Network is asking for since Viacom could jack the rates after they buy Echostar out.
 
Scott Greczkowski

Scott Greczkowski

Thread Starter
Welcome HOME to SatelliteGuys!
Staff member
HERE TO HELP YOU!
Sep 7, 2003
100,693
20,246
Newington, CT
GaryPen said:
Shouldn't this thread be in the Dish/Viacom Forum? Somebody call an administrator.
Yup I screwed up. :)

Moved to the correct area now. :D
 
C

Chris Walker

SatelliteGuys Pro
Jan 25, 2004
792
67
First off, I was unaware that Dish was a "cable system". I think Viacom was referring to Comcast, especially since they gave Comcast a favorable rate. Secondly, if Viacom and Dish were discussing a buyout, why would Viacom be directing customers to Direct and cable as fast as they can? Why would they want to lose customers from a service they would buy? Also I think the most likely scenario is Charlie BUYING another company, not the other way around. Charlie enjoys this stuff too much and gets way too involved in everything E* does for him ever to sell out.
 
dlsnyder

dlsnyder

SatelliteGuys Pro
Sep 8, 2003
1,825
3
Moreno Valley, CA
I heard just the opposite statement, also from Sumner Redstone, on the CBS radio network news while driving in to work this morning. Here is a link to a similar story on Yahoo

Mr. Redstone reportedly commented that "Viacom was not interested in acquiring satellite television service EchoStar Communications Corp."

So which Sumner Redstone do you believe?
 
C

Chris Walker

SatelliteGuys Pro
Jan 25, 2004
792
67
Paradox-SJ said:
Viacom has a market cap of 67 billion whislt Echostar is 17 Billion. I doubt CE could pull that deal off.

I never said Charlie would buy Viacom, but there are plenty of other people he could buy out..
 
GaryPen

GaryPen

Rich or poor, it's good to have money.
Supporting Founder
Chris Walker said:
Secondly, if Viacom and Dish were discussing a buyout, why would Viacom be directing customers to Direct and cable as fast as they can? Why would they want to lose customers from a service they would buy?

It makes finaincial sense to devalue something before purchasing it. It brings the purchase price down.

If you could somehow personally effect the demand, and thus the price, for a car you were thinking of buying by making it look undesirable, wouldn't you?
 
C

Chris Walker

SatelliteGuys Pro
Jan 25, 2004
792
67
GaryPen said:
It makes finaincial sense to devalue something before purchasing it. It brings the purchase price down.

If you could somehow personally effect the demand, and thus the price, for a car you were thinking of buying by making it look undesirable, wouldn't you?

E*'s stock price has gone up as a result of this, Viacom's has lost $1 today. Viacom has also stated they have no interest in Echostar.
 
B

bobj2004

SatelliteGuys Guru
Feb 9, 2004
141
0
It could be CEO Charlie pulled Viacom over the Buyout price.

He did not like there first offer. Things might be happening fast here. Dish and Viacoms stock may drop if the channels are dark very long. I would expect any Buy out rumors/info to come out this week, IF it is ever going to happen.
 
GaryPen

GaryPen

Rich or poor, it's good to have money.
Supporting Founder
Chris Walker said:
E*'s stock price has gone up as a result of this, Viacom's has lost $1 today. Viacom has also stated they have no interest in Echostar.

BTW, DISH was at 36.22 on Thurs. 3/4, and is currently at 34.12. It dipped a lot on Fri, and soured overnight right after the blackout. It has crept up to its current 34.12, which is roughly the same as it was, 34.17, at close on Monday.

Personally, it looks like it has gone down as a result of this. People new it was going to happen, which is why the slide began a few days before the actual blackout.

If you insist on using the blackout as a cutoff point, then it has remained basically the same.

OTOH, you are correct about Viacom. During the same 3/4 - today period, Viacom stock has gone from 40.65 to 37.75.

So, since 3/4/04, Dish dropped about 6%, while Viacom dropped about 7%. Seems like a draw to me.
 
M

MacKenzieIII

SatelliteGuys Guru
Dec 1, 2003
131
0
Ridgecrest, CA
From reading the actual link does anyone see anything that backs up the claims of the title?

I see NO evidence that Viacom has any intrest in buying DISH. Or that dish has any intention of selling. So other than the 1st sentence of the article it offers NO proof of any moves on either side to merge. Just seems like they are trying to get people's attention with wild guesses.
 
B

bsic

SatelliteGuys Family
Jan 6, 2004
113
0
Texas
GaryPen said:
BTW, DISH was at 36.22 on Thurs. 3/4, and is currently at 34.12. It dipped a lot on Fri, and soured overnight right after the blackout. It has crept up to its current 34.12, which is roughly the same as it was, 34.17, at close on Monday.

Personally, it looks like it has gone down as a result of this. People new it was going to happen, which is why the slide began a few days before the actual blackout.

If you insist on using the blackout as a cutoff point, then it has remained basically the same.

OTOH, you are correct about Viacom. During the same 3/4 - today period, Viacom stock has gone from 40.65 to 37.75.

So, since 3/4, Dish dropped about 6%, while Viacom dropped about 7%. Seems like a wash to me.
\

Dish stock *could* be going up because they announce earnings tommarow. Not a real strange occurance.
 
bcshields

bcshields

SatelliteGuys Pro
Supporting Founder
Nov 28, 2003
1,458
0
Delaware
*does a buyout dance* I knew they were prepping themselves for a merger/buyout!!! I knewitiknewitiknewit!!!

Too many suspicious news items coinciding together. (That and Miss Cleo told me)
 

Similar threads

K
Replies
2
Views
1K
BFG
S
Replies
24
Views
3K
slimoli
S
V
Replies
9
Views
2K
KE4EST
KE4EST
C
Replies
2
Views
855
Dah-Henny
Dah-Henny
Top