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Interesting article...does anyone have access to the full Wall Street journal article? According the the article, EchoStar is ripe for a takeover...
Summary: With Rupert Murdoch's announcement last week that News Corp. (NYSE: NWS - News) may trade its stake in DirecTV (NYSE: DTV - News) to Liberty Corp (NASDAQ: LCAPA - News) in exchange for their holdings in NWS, the satellite media industry took a beating from analysts and the market. Liberty Corp's John Malone has apparently been looking for a satellite holding for years, and is expected by analysts to invest heavily in subscriber growth if the deal goes through. Increased competition from DirecTV, the cablecos and telcos compounded by a recent loss in a patent infringement suit to TiVo make some analysts think that it will be difficult for Echostar (NASDAQ: DISH - News) to avoid a takeover. EchoStar and its CEO Charles Ergen have a loyal following on Wall Street, particularly among institutional investors. But as Jimmy Schaeffler, California satellite consulting firm Carmel Group says, a $100 million partial settlement with the television networks and an unsettled sum to be paid out to TiVo (NASDAQ: TIVO - News) mean that Ergen "is more hemmed in than ever".
Interesting article...does anyone have access to the full Wall Street journal article? According the the article, EchoStar is ripe for a takeover...
Summary: With Rupert Murdoch's announcement last week that News Corp. (NYSE: NWS - News) may trade its stake in DirecTV (NYSE: DTV - News) to Liberty Corp (NASDAQ: LCAPA - News) in exchange for their holdings in NWS, the satellite media industry took a beating from analysts and the market. Liberty Corp's John Malone has apparently been looking for a satellite holding for years, and is expected by analysts to invest heavily in subscriber growth if the deal goes through. Increased competition from DirecTV, the cablecos and telcos compounded by a recent loss in a patent infringement suit to TiVo make some analysts think that it will be difficult for Echostar (NASDAQ: DISH - News) to avoid a takeover. EchoStar and its CEO Charles Ergen have a loyal following on Wall Street, particularly among institutional investors. But as Jimmy Schaeffler, California satellite consulting firm Carmel Group says, a $100 million partial settlement with the television networks and an unsettled sum to be paid out to TiVo (NASDAQ: TIVO - News) mean that Ergen "is more hemmed in than ever".
