EchoStar is a relatively small, independent company. Satellite TV service DirecTV Group (DTV), its nearest rival, is part of the huge, global, Rupert Murdoch empire, which includes film, TV, publishing, and Internet properties. EchoStar has no cushion against troubles in its core market, making it harder for it to remain independent.
CONTROL ISSUES. Ergen, who owns the majority of voting shares, balked at a merger with Murdoch's News Corp. (NWS), which operates DirecTV His controlling stake is another impediment to a deal.
There's no obvious exit strategy for Ergen. Other buyers are unlikely to appear. One option is simply to wither, Kalla says. The other: go back to Murdoch and revisit the possibility of a merger between the two satellite giants. But Ergen is unlikely to reap as much money as he wants. And there's no way Murdoch would let Ergen keep control.
Since he has coveted his independence for so long, it may be too late for Ergen to change his mind.
