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As we mentioned yesterday, rumors have been flying that AT&T is preparing to acquire Echostar, who the
company already partners with in order to offer satellite TV and a hybrid DBS/DSL service dubbed Homezone. The Wall Street Journal today pours a little cold water on the potential deal, claiming they don't believe it will be taking off any time soon:
Turns out a number of bankers have been pitching the Dish business to AT&T, but they haven't been solicited by the telecom giant in a formal "bake-off" to see who gets the gig. Also, should EchoStar go ahead with the breakup, it could have to go into a moratorium for an estimated six months to two years to keep the deal's tax-free status.
Citi Investment Research analyst Jason Bazinet yesterday guesstimated that there was a "65 percent chance AT&T buys DISH within 12 months."
Dishing It Up: AT&T-EchoStar - WSJ.com
Investors in orbit over a possible acquisition of EchoStar Communications by AT&T may want to return to earth.
Rumors about a tie-up were flying yesterday, stoked by reports from TheStreet.com and a Citigroup analyst. (Indeed, speculation took off in late September when EchoStar said it was considering separating its satellite-television business, known as Dish Network, from businesses including its cable set-top-box maker.) After speaking yesterday to bankers who follow the industry, we don't expect AT&T will be pulling the trigger on a purchase of the $23 billion satellite-TV company any time soon.
Why? Turns out a number of bankers have been pitching the Dish business to AT&T, but they haven't been solicited by the telecom giant in a formal "bake-off" to see who gets the gig. Also, should EchoStar go ahead with the breakup, it could have to go into a moratorium for an estimated six months to two years to keep the deal's tax-free status.
The September announcement could have been EchoStar CEO Charlie Ergen's attempt to light a fire under any potential suitor, so there is no guarantee a deal won't come together in the next few months. Still, if AT&T were so eager to do a deal, why resort to what bankers call the "I'll shoot myself" strategy to bring them to the negotiating table?
Officials at both companies declined to comment.
As we mentioned yesterday, rumors have been flying that AT&T is preparing to acquire Echostar, who the
company already partners with in order to offer satellite TV and a hybrid DBS/DSL service dubbed Homezone. The Wall Street Journal today pours a little cold water on the potential deal, claiming they don't believe it will be taking off any time soon:
Turns out a number of bankers have been pitching the Dish business to AT&T, but they haven't been solicited by the telecom giant in a formal "bake-off" to see who gets the gig. Also, should EchoStar go ahead with the breakup, it could have to go into a moratorium for an estimated six months to two years to keep the deal's tax-free status.
Citi Investment Research analyst Jason Bazinet yesterday guesstimated that there was a "65 percent chance AT&T buys DISH within 12 months."
Dishing It Up: AT&T-EchoStar - WSJ.com
Investors in orbit over a possible acquisition of EchoStar Communications by AT&T may want to return to earth.
Rumors about a tie-up were flying yesterday, stoked by reports from TheStreet.com and a Citigroup analyst. (Indeed, speculation took off in late September when EchoStar said it was considering separating its satellite-television business, known as Dish Network, from businesses including its cable set-top-box maker.) After speaking yesterday to bankers who follow the industry, we don't expect AT&T will be pulling the trigger on a purchase of the $23 billion satellite-TV company any time soon.
Why? Turns out a number of bankers have been pitching the Dish business to AT&T, but they haven't been solicited by the telecom giant in a formal "bake-off" to see who gets the gig. Also, should EchoStar go ahead with the breakup, it could have to go into a moratorium for an estimated six months to two years to keep the deal's tax-free status.
The September announcement could have been EchoStar CEO Charlie Ergen's attempt to light a fire under any potential suitor, so there is no guarantee a deal won't come together in the next few months. Still, if AT&T were so eager to do a deal, why resort to what bankers call the "I'll shoot myself" strategy to bring them to the negotiating table?
Officials at both companies declined to comment.
