DirecTV and EchoStar talking merger again?

Nature abhors a vacuum, so now that the AMD/ATI deal has gone from rumor to reality, we're in dire need of another potential mega-merger to fill the void. Luckily for us, News Corp. owner and the real "king of all media" Rupert Murdoch recently made some tantalizing comments on the Charlie Rose Show that may indicate DirecTV's renewed interest in merging with Dish Network parent EchoStar. Although he obviously didn't come right out and say that the two companies were involved in talks of any sort, Murdoch did suggest that the television landscape has shifted enough since the last merger attempt in 2002 that "it would be much harder for the government to turn it down" this time around. However, he also cautioned that a deal would be difficult if EchoStar CEO Charlie Ergen -- whose clashes with News Corp. execs reportedly put the kibosh on merger talks all the way back in 1997 -- insisted on running the new entity as one of EchoStar's conditions. Ars Technica sums up the situation nicely by suggesting that although a merger would help both companies in their quest to offer broadband service should they succeed in picking up some spectrum at next month's FCC auction, government regulators would be unlikely to approve such a deal for the same reason as last time: there are still too many consumers out there whose only option is satellite TV, giving a combined DirecTV-Dish entity monopoly status in certain areas of the country. Long story short: there's an excellent chance that Murdoch would love a deal to go down, but chances are it ain't gonna happen.

[Via Ars Technica]

[mike @ Jul 24th 2006 6:51PM]

good, we don't need any more mergers this decade.

[Jon Himself @ Jul 24th 2006 7:00PM]

I wonder what this will mean for the FTA crowd? er... I mean...I've got to go

[Robert Aitchison @ Jul 24th 2006 7:27PM]

While I can't imagine how this could possibly pass antitrust muster, there have been plenty of approved mergers in recent history that I wouldn't be surprised to see the return of the glory days of Standard Oil.

Ma Bell is already mostly put back together again and there are only a few major oil companies left that control virtually all the oil & gasoline in this country.

[shmengie @ Jul 24th 2006 7:54PM]

This is the biggest news since the IBM/Nabisco merger fell through. The Keebler elves thought it would be unfair for PC users to *have* to eat Ritz crackers and should have the opportunity to also enjoy Waverly Wafers. Of course, the EFFDA aggreed.

[chris @ Jul 25th 2006 6:23AM]

News Corp didn't own DTV in 94. Ecostar tried to purchase Hughes Electronics (DTV former parent company) from GM, but that deal fell through.

[Danny @ Jul 25th 2006 8:37AM]

So satellite companies can't have a monopoly but the cable companies can? How is it I have two choices for satellite tv but only one crappy choice for cable tv?

[HighDef Edition @ Jul 25th 2006 11:14AM]

Here in S Florida I have no option - it's either Comcast or nothing. So what is the issue with DirecTv merging with DishNetwork? Monopoly indeed.

[Joe Shmoe @ Jul 25th 2006 12:50PM]

There are still many places in the country where there are no cable options. Offering those customers a choice between competing vendors is imperitive.

Also, the logical fallacy in post #s 6 & 7 is palpable. You cannot justify one wrong with another. We should be breaking the cable company monopolies not making more media monopolies.

[Julie Chadwick @ Jul 25th 2006 7:15PM]

This story drives me nuts. There's always talk about these two getting together. Let me know if it ever happens...

[Larry @ Jul 27th 2006 11:08AM]

Telcos and cable companies are content providers, not just telephone or tv providers. For Directv or Echo Star to survive they will have to match the content of there competators. The only financially viable salution in there merger. I use Directv for my tv as apposed to a very poor rural cable company. OTA is to far for good reception. It is to complex just to say the the merger would cause a monopoly. Cable and telcos have monopolies already in there delivery systems. Competition will curb runaway cost to consumers. Without the merger, Directv and Echo Star will not be able to compete. They will have to maintain two delivery systems, while the competition only have to maintain one.

[Zac @ Aug 4th 2006 1:21PM]

no its not a merger/ newscorp wants to buy it outright which is flip from years ago when echostat wanted to buy dtv. just like with primestar/ nrtc/ pegasus/ tivo/ etc. dtv looks to swallow and/or dessimate another substandard tv/entertainment organization. 29 hd channels? oh boy, i cant wait to see dish net home shopping and museum channels on hd! that sounds like a hoot and a holler. (thumbs down)

i guess its all relative but that would certainly be interesting to see all those cats with their 2 room dvrs(that often break down and become 1 room dvr) experience a real dvr.

[James @ Jul 10th 2009 3:47AM]

You was talking about the government regulators not leting the merger go because of to many customers living in areas where satelite service is all they can get and not having a choice and being a monopoly well seems to me if dishnet is having the troubles they are now and it continues then they might have to close up shop anyways like ZoomHD sat service a few years back(Dishnet bought it) and the customers would at that point only have one choice anyways. LOL. just my view