EchoStar Shares Up on Merger Speculation
ENGLEWOOD, July 18: The share price of satellite-TV operator EchoStar Communications rose to a 17-month high yesterday following speculation that DIRECTV majority shareholder News Corporation is mulling a bid for the company.
A merger of DIRECTV and EchoStar’s DISH Network would certainly ruffle the feathers of anti-trust authorities, which blocked EchoStar’s attempt to acquire DIRECTV from Hughes back in 2002. News Corp. eventually won the battle to acquire DIRECTV, the leading satellite platform in the U.S.
However, reports indicate that a case could be made that a merged satellite operator could more effectively take on competition from cable TV platforms and telcos rolling out triple-play services.
For News Corp. to acquire EchoStar, it would need to gain the support of EchoStar’s chairman and majority shareholder, Charles Ergen, who reportedly controls more than 90 percent of the company’s voting-share power.
Directv win's again
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