EchoStar rebuffed by ION

[Poke]

http://biz.yahoo.com/bizj/070503/1457821.html?.v=1

ION Media Networks rebuffed a $2.13 billion buyout offer from EchoStar Communications Inc., the New York Post reported Thursday.
According to the Post, ION was about to approve a tender offer from NBC Universal and Citadel, a hedge fund and some of ION's largest shareholders, but some shareholders said the offer was too low.

The Post said that some ION shareholders have threatened to sue if the board approves the NBC-Universal-Citadel deal.

Kathie Gonzales, a spokeswoman for EchoStar, declined to comment on the New York Post report.

ION (AMEX: ION), formerly Paxson Communications, owns 60 TV stations and its own network. The company, which employs 483 people, is based in West Palm Beach, Fla.

Based in Englewood, EchoStar (NASDAQ: DISH) is the nation's No. 2 satellite TV provider with more than 13 million subscribers receiving its Dish Network

 

[chaddux]

Why would DISH want to pay $2 billion for that? Does anyone ever watch those stations? I thought it was like 21 hours of infomercials each day.

 

[Juan]

Dumb question.. Is E* trying to buy 60 OTA tv stations or just the network?

 

[Cyclone]

Dumb question.. Is E* trying to buy 60 OTA tv stations or just the network?

Sounds like they would get both the stations and the network. Hmm. Sounds like Dish is getting tired of being the only kid on the MSO block without their own networks.

 

[SarKen]

Why would DISH want to pay $2 billion for that? Does anyone ever watch those stations? I thought it was like 21 hours of infomercials each day.

That is a lot of money for a network that is 20+ year old reruns.

 

[TNGTony]

If the network owns 60+ TV stations, then 2 billion would translate to about 33 and a third million dollars per TV station. Can we play "Flip this TV station"? Or could dish use its Vivendi connection to program a real OTA network?

See ya
Tony

 

[Van]

I dont know, buy a chump network that shows infomercials, restructure it to start showing some good programming and bring in viewers along with clients to realise a profit then sell it for twice what you bought it for or hold on to it and have some better leverage for something else in the future.

 

[ats7627]

http://biz.yahoo.com/bizj/070503/1457821.html?.v=1

ION Media Networks rebuffed a $2.13 billion buyout offer from EchoStar Communications Inc., the New York Post reported Thursday.
According to the Post, ION was about to approve a tender offer from NBC Universal and Citadel, a hedge fund and some of ION's largest shareholders, but some shareholders said the offer was too low.

The Post said that some ION shareholders have threatened to sue if the board approves the NBC-Universal-Citadel deal.

Kathie Gonzales, a spokeswoman for EchoStar, declined to comment on the New York Post report.

ION (AMEX: ION), formerly Paxson Communications, owns 60 TV stations and its own network. The company, which employs 483 people, is based in West Palm Beach, Fla.

Based in Englewood, EchoStar (NASDAQ: DISH) is the nation's No. 2 satellite TV provider with more than 13 million subscribers receiving its Dish Network

The Post reported that the NBCU - Citidel offer was $100 Million. That is why the ION shareholders are upset.

 

[MikeD-C05]

So ION Media Networks want to take a 100million offer from Nbc but pass on 2.13 BILLION DOLLARS from Echostar. I think if I was a stock holder I would be upset too.

 

[JerseyGuy]

If Charlie bought ION Televison, with the luck E* has been having, Sprint would probably sue them over their 90s Phone network ION.

 

[socalpanman]

Why would DISH want to pay $2 billion for that? Does anyone ever watch those stations? I thought it was like 21 hours of infomercials each day.

Everyone is overlooking Qubo, their big kid network arm. Children's programming is a big deal. It's a huge niche market. Scholastic, NBC, and many big kid's educational production players are building this thing up.

Still unclear though why Echostar is interested.

 

[kb7oeb]

Odd, doesn't dish carry few or none of the ion stations?

 

[jself1982]

Can we say 'encrypted', those in the FTA forum will know what I am talking about.

 

[Barry Erick]

You don't buy a group of stations and necessarially keep the programming (or lack of). Nothing says whoever buys this will keep the programming. Maybe they'll program the Dish HD Demo channel 24x7 and make it one huge commercial. Or maybe a 24x7 test pattern. Or 24x7 tech talk - charlie re-runs!

 

[dlsnyder]

Charlie wants to be Rupert Murdoch when he grows up. I wouldn't be surprised if he tried to buy a newspaper or two in the near future.

 

[Stargazer]

This could be his way of diversifying.

 

[VinceT3]

they could use it like it's been used against them before..

 

[chaddux]

they could use it like it's been used against them before..

Meaning what? ION, in its current state, isnt really much of a threat since no one watches it anyway.

 

[Two Good]

Ion has new plans

http://www.hollywoodreporter.com/hr...sion/news/e3i3eb7af9e30299473b66808305661b01c

 

[jegrant]

I have to admit, it's confusing to me why E* would want to buy ION in the first place. But they sure do like their shopping channels .

I also suspect it would be a cheap way to run a bunch of E*'s own infomercials, on a channel that has very good nationwide carriage.