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Print 19 comment(s) - last by Araxen.. on Jul 27 at 5:15 PM

If at first you don't succeed, try and try again until the FCC approves of a merger

About 6 years ago two of America's largest satellite media companies sought each other for a merger with no luck as the government would not approve a move to create a potential monopoly. 2006 has been quite a year in mergers and acquisitions and there has been a few hints on some more talks of DirecTV and EchoStar coming together from none other than Rupert Murdoch, chairman of the company that owns DirecTV. According to TVPredictions.com, Murdoch has stated that the federal government would most likely approve a DirecTV-EchoStar merger.

If it weren't for other events that hint at the two satellite/communications giants working together, Murdoch's statement would just be another meaningless statement. However, DirecTV and EchoStart have recently joined to bid on wireless airwaves in the United States and DirecTV's own CFO has stated that there are interests in a merger between the two.

EchoStar owns DirecTV's main competitor, DISH Network, which is why the initial merger was shot down in 2002. But since then there have been a number of new satellite TV offerings by various media companies to reduce a possible monopolistic practice. However, a joining of forces between DirecTV and EchoStar will mean that the only satellite media providers they will have to compete with are the smaller fish in the sea.


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RE: Doesn't sound good.
By masher2 (blog) on 7/26/2006 3:18:57 PM , Rating: 3
Depends on how you define "the market". Is satellite TV its own market? Its product looks pretty much like cable TV to me, just with a slightly different distribution mechanism.


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