New twist? Echo star to be sold?

[catkoko]

Sling Media, EchoStar & Ma Bell: The Buyout Game « GigaOM

Report: AT&T May Buy EchoStar
Washington, D.C. (September 27, 2007) -- AT&T has offered to buy EchoStar, the nation's second largest satellite TV service.

That's according to an article today from TheStreet.com.

The web site reports that AT&T has offered $55 a share, while the satcaster may be holding out for $65 a share.

The deal would seem to make sense for both companies.

EchoStar is under pressure to increase spending on several initiatives, including High-Definition TV, to keep pace with rival DIRECTV and the cable operators. AT&T could supply the financing, for instance, for EchoStar to launch new satellite to expand high-def capacity.

Meanwhile, AT&T's TV service, u-Verse, has failed to reach 50,000 subscribers after more than two years. Buying EchoStar would give the telco more than 13 million video subscribers overnight.

TheStreet.com says Oppenheimer analyst Tom Eagan has raised his rating on EchoStar in anticipation of a AT&T deal. He believes AT&T would likely pay about $56 a share for the satcaster.

Both companies declined to comment on Thursday, TheStreet.com reports.


http://www.thestreet.com/s/att-echos.../10381691.html

 

[KE4EST]

I don't think it will happen.

 

[greg47]

Att & Dish

I could see this coming together as ATT really screwed themselves over the last ten years by not upgrading their equipment. Most of their service areas do not have the proper equiopment or even decent lines to carry DSL or standard television service. Would be a quick way to offer digital television and HD television service at a decent price. Another tool to fight time warner and comcast cable providers. The only downside I can see at the momment is DISH can not seem to fix the signal theft problem. A infusion of ATT cash would give them a good bankroll of cash to speed up the changeover to Mpeg 4 and maybe secure their system.

 

[Mr Tony]

All it would do is be called AT&T Dish

 

[catkoko]

Just makes you wonder how much of this is coincidence and how much has been long range planning sky angel, sling and now att will wrap it all up in one neat little package? I have never been impressed with att in past dealings

 

[Mr Tony]

AT&T has thought of buying Dish for almost a year now...back when AT&T was SBC

 

[loves2watch]

Since Echostar has purchased Sky Angel and all of it's satellites who knows what will happen with AT&T.

 

[Pepper]

Sky Angel never owned a satellite, nor has it been purchased by Echostar.

 

[loves2watch]

There is a filing before the FCC for Echostar to take over the Sky Angel transponders on E*3.

 

[lumpkin666]

There is a filing before the FCC for Echostar to take over the Sky Angel transponders on E*3.

Like Pepper said, Sky Angel never owned a satellite. They may have owned a license to operate a handful of specific transponders that they either "owned" or more likely leased on a single failing satellite, but they didn't own a satellite. Some here wish that they DID own a satellite, since that's what the "invested" in when they signed up for Sky Angel.

The transfer of licenses has been known for some time, and certainly would be known by AT&T if they were in discussions with E*, as such a disclosure would be necessary in any business deal of this nature.

 

[Pepper]

The FCC filing is indeed public knowledge for those who know how to find it, but the average SA subscriber, unless they are a regular here, have been told absolutely nothing. That's what I have a problem with.