Another E* takeover rumor

[wolfjc]

From the Sports Business Journal
The year ahead in sports media, through a digital crystal ball

Verizon will buy DirecTV; AT&T takes EchoStar.
Here’s something that will happen not this year, but in 2010. Frustrated by the costs associated with rolling out video (it’s expensive to build a fiber plant), Verizon and AT&T believe that the only way to truly compete with cable companies is by picking up the two satellite players.

 

[gwhitelover]

hmm.... yeah, I saw a different story about the companies attempting to merge again. People tell stories... most are not true.

 

[HDRoberts]

Odd AT&T would sign a contract to offer DirecTV, only to purchase Dish.

 

[Poke]

Yeah I dont see that happing!Version and AT&T already are spending tons of money getting their own video service up and running.. Right now Version doing their FIOS and AT&T keeps expanding their U-Verse..

 

[riffjim4069]

I can see AT&T or Verizon picking up DirecTV, but both companies would be better off (financially) acquiring Charter in a firesale then they would Dish Network. Just my opinion...

 

[Rey]

Odd AT&T would sign a contract to offer DirecTV, only to purchase Dish.

yeah i find that odd too. makes no sense. I don't know why verizon with their supposedly great fios service would want directv either.

 

[Quantum]

DirecTV is fairly expensive from a p/e standpoint, but Dish is dirt-cheap. Wouldn't surprise me.

 

[wkomorow]

yeah i find that odd too. makes no sense. I don't know why verizon with their supposedly great fios service would want directv either.

Verizon has hit a major snag in both NY and MA - they want to negotiate with a central state authority, but in both states local municipal authorities are the ones who contract with fiber/copper providers for cable-like services. Verizon has said they will stop further roll outs in both states until the laws are changed. They are also selling their lines to Fairpoint in NH, Maine, and Vermont. So their growth potential in their traditionally home territory is very limited.

 

[Juan]

Verizon has hit a major snag in both NY and MA - they want to negotiate with a central state authority, but in both states local municipal authorities are the ones who contract with fiber/copper providers for cable-like services. Verizon has said they will stop further roll outs in both states until the laws are changed. They are also selling their lines to Fairpoint in NH, Maine, and Vermont. So their growth potential in their traditionally home territory is very limited.

Thats BS

 

[satjay]

Just as seasons change this seems to come up at least a few times a year. The person who does the website tvpredictions.com "Predicts" that this could happen

 

[riffjim4069]

Verizon has hit a major snag in both NY and MA - they want to negotiate with a central state authority, but in both states local municipal authorities are the ones who contract with fiber/copper providers for cable-like services. Verizon has said they will stop further roll outs in both states until the laws are changed. They are also selling their lines to Fairpoint in NH, Maine, and Vermont. So their growth potential in their traditionally home territory is very limited.

I somewhat agree...they are not nationwide, and laying fiber-to-the-home in the 28 states they operate takes time and is hugely expensive...and political too. To be honest, there is not much money in video these days (very slim profit margin) - the real money is in broadband and phone service. Verizon still has a lot of room for growth in their territories, but the build-out will take another 5-years and I see their FiOS TV numbers peaking in the 7 million range. I think Verizon making short-term use of their reselling agreement with DirecTV makes better sence then buying them or Dish Network. Plus, they are busy buying Alltel and investing in Verizon Wireless, which is also very profitable.

I still say they would be better off buying Charter than E*.

 

[Juan]

I somewhat agree...they are not nationwide, and laying fiber-to-the-home in the 28 states they operate takes time and is hugely expensive...and political too. To be honest, there is not much money in video these days (very slim profit margin) - the real money is in broadband and phone service. Verizon still has a lot of room for growth in their territories, but the build-out will take another 5-years and I see their FiOS TV numbers peaking in the 7 million range. I think Verizon making short-term use of their reselling agreement with DirecTV makes better sence then buying them or Dish Network. Plus, they are busy buying Alltel and investing in Verizon Wireless, which is also very profitable.

I still say they would be better off buying Charter than E*.

well they have started building out in non-verizon terrorties (just a couple in texas and cali)