WSJ - Liberty, EchoStar Plot Intelsat Bid

[cforrest]

Posted in D* forum as well, mods feel free to combine both or leave as is, since both E* & D* would be impacted by this.

Joint Offer Would Set Up
Unusual Pairing of Rivals
Looking to Reduce Costs

By DENNIS K. BERMAN, ANDY PASZTOR, and DANA CIMILLUCA
June 14, 2007; Page A3

Liberty Media Corp. and EchoStar Communications Corp. are preparing a surprising joint offer for satellite-communications provider Intelsat Ltd., which is accepting final bids for its auction today, according to people familiar with the matter.

The pairing represents a bold cooperation between satellite-TV broadcaster EchoStar and media holding company Liberty, which is slated to take control of competing satellite-broadcaster DirecTV Group Inc. in the coming months. The two firms still could decide against making a formal bid.

Intelsat is expected to draw bids of $4.5 billion to more than $5.5 billion, according to people familiar with the auction. The company already supports about $11.5 billion in debt, put on the company after a series of mergers and one-time dividends paid to its group of four private-equity owners.

If it succeeds, the joint bid would create a highly unusual partnership between two strong-willed rivals who run satellite-to-home broadcast systems that currently compete with each other. But the two have been exploring ways to work with one another, according to people familiar with their discussions. Their main goal is to reduce operating costs, these people say, and a substantial amount could be cut from both firms with an Intelsat purchase.

Continued: Liberty, EchoStar Plot Intelsat Bid - WSJ.com

 

[gadgtfreek]

So, long story short, Charlie and Mr Malone are getting cozy(which is a GOOD thing) and might work at purchasing it together.

This would give D* and E* access to more capacity. Correct?

Problem is cable is involved and they are going to raise a stink about the purchase Im sure.

 

[Scott Greczkowski]

Remember Charlie and Dr. Malone are good friends. And there has been buzz going on for awhile now that Dish and DirecTV have been working on an idea to share bandwidth for things like HD LIL's.

This look like it could be one of the way it does it.

 

[MikeD-C05]

So a common company for both companies providing hd locals to both. I seem to remember saying Dish and Directv should do this years ago. Maybe it will come true.

 

[gadgtfreek]

So a common company for both companies providing hd locals to both. I seem to remember saying Dish and Directv should do this years ago. Maybe it will come true.

Makes sense.

 

[RedSavina]

Remember Charlie and Dr. Malone are good friends. And there has been buzz going on for awhile now that Dish and DirecTV have been working on an idea to share bandwidth for things like HD LIL's.

This look like it could be one of the way it does it.

Scott,

How does this fit in with some of the rumors floating around about E* considering splitting the company? At first glance, this would seem consistent with the rumor...

 

[jegrant]

Splitting the company (E*) into how many pieces? Do tell. I have not heard these rumors.

 

[navychop]

This just brings up questions about hardware/different signals- more receiver replacements?

 

[tsduke]

Liberty, EchoStar lose Intelsat bid

The Denver Post - Liberty, EchoStar lose Intelsat bid

John Malone's Liberty Media and Charlie Ergen's EchoStar Communications have failed in their joint bid to acquire Intelsat, a satellite-communications provider.
Private equity firm BC Partners has agreed to purchase Pembroke, Bermuda-based Intelsat for $5.03 billion, the companies said in a statement today. BC also will assume $11.4 billion in debt.
London-based BC had reportedly been in a heated bidding war for Intelsat with Liberty and EchoStar.
Liberty and EchoStar, both based in Douglas County, made a joint bid for Intelsat, according to The Wall Street Journal.
Intelsat operates 51 satellites that distribute video programming for broadcast networks and cable companies.
Liberty owns a 38 percent stake in No. 1 satellite-TV provider DirecTV, and EchoStar operates Dish Network, the No. 2 satellite-TV service.
Spokesmen for EchoStar and Liberty declined comment today.
EchoStar and DirecTV executives have previously said they would be willing to share some back-end satellite services, prompting speculation of a merger between the companies.
Ergen, EchoStar's co-founder and chairman, has said sharing the cost of these services could save both companies millions of dollars.
Malone chairs Liberty, which has a wide array of media holdings, such as the QVC home-shopping network and Starz cable-TV network. The BC-Intelsat deal is expected to close in six to nine months. BC will own 76 percent of Intelsat, while existing stakeholders in the company will retain 24 percent.

 

[gadgtfreek]

That sucks.

 

[lakebum431]

Splitting the company (E*) into how many pieces? Do tell. I have not heard these rumors.

Gotta be a pub member to hear certain things