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story category Dish, DirecTV Merger Speculation
Potential deal in the works? Investors think so ...
(old news - 03:17PM Sunday Jul 30 2006)
tags: satellite
E-Commerce News points out that investors say there may soon be a wedding in the satellite TV industry. Shares of satellite television provider EchoStar Communications the name behind Dish Network, have soared amid speculation about the possibility of a merger with arch rival DirecTV. Even with the stock reaching a 52-week high of US $34.43 on Thursday, the company still faces fierce competition, and some analysts remain pessimistic. During investment banker Herbert Allen's annual media-mogul summit in Sun Valley, Idaho, earlier this month, a flurry of press reports and hints from involved parties suggested a possible deal between the companies.

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Forums » Dish, DirecTV Merger Speculation
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GOLFnSUN
Enjoy the sun
Premium
join:2002-03-03
Avalon, NJ
·Sprint Mobile Broa..
·Comcast

Small investors should avoid buying stock on merger rumors

The potential merger of the two Satellite firms will generate a lot of buzz in the stock market. But only insiders will be able to get in and out of Echostar fast enough not to get burnt as rumors pop up and then fade. Small investors will inevitably buy at the wrong time and will not get out fast enough if merger rumors turn out false. So, if you are smart, you will follow this potential merger as a possible video customer and not as an investor.
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GenBlood

join:2005-04-14
Nashua, NH

Re: Small investors should avoid buying stock on merger rumors

This could be a BIG ... plus for satellite TV users...
We will get lower prices ... and Comcast will NOT
be happy about the merger ...

I can see a price war coming ..
gpancner

join:2001-09-27
Nine Mile Falls, WA

Re: Small investors should avoid buying stock on merger rumors

I have a bridge in brooklyn to sell you. Please pay me in cash.
fiberguy
My views are my own.
Premium
join:2005-05-20
..and the merger will lower your rates exactly how again?

edward50
Premium
join:2006-06-10
Brookfield, MO

"We will get lower prices"

There is no reason to believe lower prices would be a result of any merger. Why would share holders allow such a thing to happen? The loss of competition would give the company no incentive to lower prices. The only real effect I see is a loss of consumer choice. When has this ever been a good thing? In markets where satellite service is the consumers only choice (especially very rural areas) their options would be one satellite service or nothing at all. How is this a benefit?

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN

Re: Small investors should avoid buying stock on merger rumors

Dish/DirecTV are competition companies, but more with cable then with each other. Sure in more rural markets not serviced by a cable co it's more of an issue, but in suburban or urban settings, it's with the cable companies. You are still going to have that competition there.

Both Dish and DirecTV have national pricing. They don't charge different prices in different markets based on what the market supports. So if the merged company still wants to compete with the cable companies, they will have to essentially compete with every cable company in every market.

I won't argue that choice and competition is a good thing. It is. But the merged company won't be as bad as what you think.
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MadMANN
Premium
join:2005-08-19
·Comcast

said by GenBlood See Profile :

This could be a BIG ... plus for satellite TV users...
We will get lower prices ... and Comcast will NOT
be happy about the merger ...

I can see a price war coming ..
That's one of the funniest things I've ever read! People who have no choice but satellite will have their choices down to one. So where is the plus for sat users? Lower price? Not in your wildest dreams.

Comcast could probably care less. Comcast has REAL HD content, VOD, internet, and phone. Either Dish company has. . . .hmm can't think of anything right now, but I'll let you know if I do.

MarkyD
Premium
join:2002-08-20
Oklahoma City, OK
clubs:
·Cox HSI

Re: Small investors should avoid buying stock on merger rumors

said by MadMANN See Profile :

Comcast could probably care less. Comcast has REAL HD content, VOD, internet, and phone. Either Dish company has. . . .hmm can't think of anything right now, but I'll let you know if I do.
That's funny...
I just switched from TWC to Dish because TWC's picture quality (even on HD) was crap.
I had repeat visits from a technician for over a month...I had the regional VP involved...and finally they told me that "nothing is wrong...that's just how it should look..."

Dish HD quality is LEAPS and BOUNDS above what any cable provider has offered me. I've had Cox HD in Oklahoma City and TWC HD here in El Paso...and both suffered from a few fatal flaws:
1. HD lineup was extremely meager
2. HD channels suffered from constant digital blocking...despite several replaced drops, etc.

Dish HD has 26 HD channels on the package I subscribe to...I don't even have the premiums like HBO, SHO, etc.

So, please explain to me what you mean by "real" HD? Are you implying that because it is MPEG4, it's not "real?"

I have news for you...the future of HD is MPEG4 compression, no matter who the carrier is. MPEG4 is here to stay...it's part of the answer to MORE HD channels. It's sad that the highly compressed MPEG4 stream coming from Dish Network looks 100000x better than the MPEG2 streams from TWC/Cox on my 42" 1080p LCD.
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jameswade

join:2001-12-09
Hot Springs, NC
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Re: Small investors should avoid buying stock on merger rumors

And I'm ready to switch from DirecTV to Comcast because the picture looks like crap. especially the Atlanta locals.

This is really hard to call. Comcast in Atlanta looks much better than either Dish or DirecTV. Of course Comcast is less reliable for many people.

But Comcast could start upping their compression any time. This is hard to compare, with statistical multiplexing you picture quality on digital satellite or digital changes from second to second - if you not watching sports and too many high profile games come on at the same time your picture quality is going to drop.

MPEG 4 has nothing to do with HD. It's just a more efficient compression scheme than MPEG 2. HD uses so much bandwidth that DBS providers would really rather use it than the old scheme.

Of course, while MPEG 4 is more efficient it terms of bandwidth usage, you can still compress so much that the picture looks like crap!

So much for 'Digital Quality'!
lovswr

join:2001-09-15
Stockbridge, GA

Re: Small investors should avoid buying stock on merger rumors

I wish I could get Comcast. Charter (who are trying to get themselves bought) is what we have down in Stockbridge. I too would switch to Comcast from D* in a heartbeat. The new MPG-4 HD DVR will start in the LA Area in Aug (who know when it will get to Atlanta) but I use an antenna to get the Locals in HD

On topic This will not result in lower prices, but they could become more competative. For example, the D* customers could start getting the VOOM channels & also it would allow them to increase the B/W across the board, what with all the existing duplicated channels. I know that the use different schemes for encoding/decoding (& encryption I think) but maybe it is close enough that the existing boxes would just need modified firmware. The Satellies of both carriers are virtually in the same orbital slots & I think the dishes (AT-9, Dish 500 etc) would be totally interchangeble...
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MadMANN
Premium
join:2005-08-19
·Comcast

That's funny...
I just switched from TWC to Dish because TWC's picture quality (even on HD) was crap.
I had repeat visits from a technician for over a month...I had the regional VP involved...and finally they told me that "nothing is wrong...that's just how it should look..."

Dish HD quality is LEAPS and BOUNDS above what any cable provider has offered me. I've had Cox HD in Oklahoma City and TWC HD here in El Paso...and both suffered from a few fatal flaws:
1. HD lineup was extremely meager
2. HD channels suffered from constant digital blocking...despite several replaced drops, etc.

Dish HD has 26 HD channels on the package I subscribe to...I don't even have the premiums like HBO, SHO, etc.

So, please explain to me what you mean by "real" HD? Are you implying that because it is MPEG4, it's not "real?"

I have news for you...the future of HD is MPEG4 compression, no matter who the carrier is. MPEG4 is here to stay...it's part of the answer to MORE HD channels. It's sad that the highly compressed MPEG4 stream coming from Dish Network looks 100000x better than the MPEG2 streams from TWC/Cox on my 42" 1080p LCD.
I said nothing about TW or Cox. I responded to someone else's reference to Comcast. I am not going to argue about pic quality in your individual situation with a provider I have no knowledge of in your area. But I did notice you said nothing about the other 3 services that I mentioned that no satellite company can presently compete with.

As far as meager HD lineup, I would take 5 or 6 good HD channels PLUS locals in favor of a bunch of worthless ones. Honestly, what in the Hell is Kung Fu HD? Or treasure HD? Maybe Cox will acquire "The Wind channel" in HD. All wind all of the time. People will line up around the block for that one.

Seriously, if you like your service, kudos to ya. But my original response was to someone actually thinking that prices are going to go down because of this merger and that Comcast actually cares. If anything, they'll probably go up, and I'm sure that there are no Comcast execs losing sleep over this.

MarkyD
Premium
join:2002-08-20
Oklahoma City, OK
clubs:
·Cox HSI

Re: Small investors should avoid buying stock on merger rumors

said by MadMANN See Profile :

Seriously, if you like your service, kudos to ya. But my original response was to someone actually thinking that prices are going to go down because of this merger and that Comcast actually cares. If anything, they'll probably go up, and I'm sure that there are no Comcast execs losing sleep over this.
I see your point...and you are correct, I did not mention VOD/Digital Phone/etc.

my main point is that Dish offers a lot of HD channels whereas most cable companies don't. If the two sat providers merge, that opens up a LOT more capacity for more HD channels. I think cable SHOULD be scared...
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dvd536
as Mr. Pink as they come
Premium
join:2001-04-27
Phoenix, AZ

said by MarkyD See Profile :

said by MadMANN See Profile
Dish HD has 26 HD channels on the package I subscribe to...I don't even have the premiums like HBO, SHO, etc.

So, please explain to me what you mean by "real" HD? Are you implying that because it is MPEG4, it's not "real?"
probably talking about how DISH down-rezzes their HD. its true that that isn't true hi-def
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PDXPLT

join:2003-12-04
Banks, OR

Re: Small investors should avoid buying stock on merger rumors

said by dvd536 See Profile :

probably talking about how DISH down-rezzes their HD. its true that that isn't true hi-def
Dish does not down-rez their HD. It's at 1920x1080 (and I actually have a projection unit that will display that resolution). DirecTV, however, is well-known for their "HD lite" which is down-rez'd.

I'd hate to see this happen. With Dish I get my HD locals, a bunch of good HD channels (HBO, Showtime, DiscoveryHD, HDNet, HDNet movies), and also a bunch of so-so ones (the old Voom channels). If they were to merge, I bet Dish wouls go away and we'd just be left with DirecTV. Since there is no cable here, it would be a monopoly situation ansI'd be left no choice in my TV provider.

thewolfman

join:2003-04-03
Niagara Falls, NY
clubs:
·RoadRunner Cable
·Verizon Online DSL

said by GenBlood See Profile :

This could be a BIG ... plus for satellite TV users...
We will get lower prices ... and Comcast will NOT
be happy about the merger ...

I can see a price war coming ..
????

Can I have some of whatever you are smoking/drinking please. It must be really good stuff for you to think what you are thinking.
GenBlood

join:2005-04-14
Nashua, NH

Re: Small investors should avoid buying stock on merger rumors

In the coming weeks more details will leak out ...

thewolfman

join:2003-04-03
Niagara Falls, NY
clubs:
·RoadRunner Cable
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Re: Small investors should avoid buying stock on merger rumors

said by GenBlood See Profile :

In the coming weeks more details will leak out ...
"leak out"?

Whatever that means...............................

Eliminating choices never results in lower prices, it results in higher prices and less choice.

"leak" that................
jarthur31

join:2006-04-14
Carlsbad, NM
Less competition means higher prices! This is a fact of life. Don't believe those corporate lies.

GlenQuagmire
Giggidy Giggidy Giggidy Goo
Premium
join:2004-02-16
Grand Rapids, MI

Merger

I may need someone to refresh my memory but several years ago I thought they tried to merged but were told they can't because there would be competition for satellite TV.
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hobgoblin
Sortof Agoblin
Premium
join:2001-11-25
Orchard Park, NY
clubs:

Re: Merger

said by GlenQuagmire See Profile :

I may need someone to refresh my memory but several years ago I thought they tried to merged but were told they can't because there would be competition for satellite TV.
If you had read the article you would know.

Hob
--
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mr sean
Professional Infidel
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join:2001-04-03
N. Absentia
clubs:

Ahhh well...I'm good at cherry picking
said by article above :

There's a good reason to be skeptical that such a deal could take place. In 2002, the Federal Communications Commission Latest News about Federal Communications Commission turned down a proposed tie-up between the companies on the basis that it would be anti-competitive. At the time, the argument was especially relevant to areas where customers did not have the option of subscribing to cable and needed satellite to receive a broad range of channels.

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XBL2009
------

join:2001-01-03
Chicago, IL

Dish is great Direct TV not so great

Dish has been the only bright spot in cable/satellite's industry offering much lower rates and more channels then Cable.

Greg_Z
Premium
join:2001-08-08
Springfield, IL
·Comcast

Re: Dish is great Direct TV not so great

said by XBL2009 See Profile :

Dish has been the only bright spot in cable/satellite's industry offering much lower rates and more channels then Cable.
Those "More" channels are duplication due to the East/West feeds, multiple shopping channels, education channels, and foreign language channels, due to Dish wanting to look for more subscribers. If you break it down, the amount of channels out there are the same for CATV as there is for Satellite.
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XBL2009
------

join:2001-01-03
Chicago, IL

Re: Dish is great Direct TV not so great

I know I like many others only watch probably 20 channels, the rest are filler.

Greg_Z
Premium
join:2001-08-08
Springfield, IL

Re: Dish is great Direct TV not so great

Same here, if it is about 20 channels. My choices are NBC, ABC, local Fox feed, USA, TBS, History, Discovery, HBO, PBS. For her, HGTV, Travel, Food.
Brigrat

join:2003-09-01
Lovington, NM
·Windstream
·WildBlue
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Your opinion is somthing you are entitled to, however; DirecTV has one thing Dish will not have any time soon...NFL Sunday Ticket...If you are an NFL addict like MANY Americans, that alone is reason enough to choose DirecTV over Dish. Dish is not even somthing I would consider at this point...

Greg_Z
Premium
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Springfield, IL
·Comcast

Re: Dish is great Direct TV not so great

said by Brigrat See Profile :

Your opinion is somthing you are entitled to, however; DirecTV has one thing Dish will not have any time soon...NFL Sunday Ticket...If you are an NFL addict like MANY Americans, that alone is reason enough to choose DirecTV over Dish. Dish is not even somthing I would consider at this point...
No, it is an Addiction, not a reason to have. In our house, there is only two teams watched. Chicago & Green Bay. And of course, you usually find Fox on the T.V. turned to the HDTV channel from 11 to the end of the game on Sundays when those teams are playing.
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hobgoblin
Sortof Agoblin
Premium
join:2001-11-25
Orchard Park, NY
clubs:

said by Brigrat See Profile :

Your opinion is somthing you are entitled to, however; DirecTV has one thing Dish will not have any time soon...NFL Sunday Ticket...If you are an NFL addict like MANY Americans, that alone is reason enough to choose DirecTV over Dish. Dish is not even somthing I would consider at this point...
The price of the package this year was the reason I cancelled it.

Hob
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"A foolish consistency is the hobgoblin of little minds." - Ralph Waldo Emerson
Brigrat

join:2003-09-01
Lovington, NM
·Windstream
·WildBlue
·Alltel Axess

Re: Dish is great Direct TV not so great

I wish I had your strength, but frankly I would pay four times as much as I do now for the package...I know it sounds crazy, but trust me, if you could hear me explain why I need it to my wife, you would probably be convinced... lol
scooper

join:2000-07-11
Youngsville, NC

It's will never happen...

Let all the suckers invest - this will never pass the FCC and FTC. It's been tried already...

Dezbend
Premium,MVM
join:2001-04-20

Re: It's will never happen...

And Ma bell was broken up...

Greg_Z
Premium
join:2001-08-08
Springfield, IL
·Comcast

Re: It's will never happen...

said by Dezbend See Profile :

And Ma bell was broken up...
MA Bell was never broken up. In reality, all they did was allow for competition. The thing was due to AT&T was a monopoly, due to they would not allow direct competition in areas, and that was the hole act that was enacted.

MA Bell is still as strong as it was, and more then ever now in the 21st century. Rember that the infrastructure that everyone uses, is still wholey owned by American Telegraph & Telephone.
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spewak
Kiss It, Kiss It Real Good
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join:2001-08-07
Elk Grove, CA
·SureWest Internet
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said by scooper See Profile :

Let all the suckers invest - this will never pass the FCC and FTC. It's been tried already...
Never say "Never"!
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The weekend is here, grab a can of beer!

Michieru2
zzz zzz zzz
Premium
join:2005-01-28
Miami, FL
If the Bellsouth & AT&T merger passes then this is a no brainer that it will pass as well.
Sammer

join:2005-12-22
Canonsburg, PA

It's possible that different FCC and FTC Commissioners will decide differently but the fundamental reasons the deal was turned down then haven't changed. The areas that only have satellite will still only have satellite because AT&T, Verizon and the cablecos aren't exactly beating a path to those areas.

Rob A
Same Old Jets
Premium
join:2005-01-17
Pompton Plains, NJ

Wow

Didn't see that coming.

A900MHz Fan

join:2004-07-12
Mitchell, SD

HD-SDI

You haven't lived until you have seen HD @ 1.485Gbps!

Neal

makenodifference

@verizon.net

i will switch

I'll switch from directv to verizon fios-tv if it happens, and I'm not the only one who will switch due to consolidation in satellite tv.. just letting you know they will lose customers over this as I've been looking for an excuse to switch. I have no long lost relatives who I share activated receivers with, so its fine with me to switch. As it will take at least 3 years for satellite to get anywhere near cable/fiber closed circuit vod with wireless broadband.

plk
bo may sleep in loft
Premium
join:2002-04-20
Ogden, IA

Not surprised....they have no choice

The market is changing for them. In years past, they and cables offered TV only. This allowed the DTV and Dish to compete against cables. One would guess they had a small percentage of the city and small town market. This is a dying market or soon will be via High speed Internet and more so with VoIP.

Granted, VoIP is still new and has issues, but these will be resolved making the appeal of cable much more pleasant.
You also have the Bells jumping into the market with TV.
All this adds up to a next to dry and highly competitive market for DTV and Dish. All that will be left is the rural markets. Again, smaller and getting smaller as the Bells expand to the rural areas.
This expansion to the rural areas is small now....but I look for it to increase in the years to come especially via small local co-op's.

In the end, this merger is best for both of them and bad for the rural areas least for the next 10 years.
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AntiMONO

@etnet.ca

Monopoly? I think so..

Well sadly this would cause a monopoly and the gouverment would not allow it. So this is purely a rumor...

C-Band Nut

@mindspring.com

The best home TV viewing

is still C-Band, period. It's you own cable head end, what the cable companies and small dish companies use to get their signal they send to you, without the miles of cable with rusted cable ends, or rain fade from the small dishes. If you have the place to put a BUD (Big Ugly Dish) it's the best TV viewing available.

Dude111
An Awesome Dude
Premium
join:2003-08-04
USA
·Time Warner VOIP

Re: The best home TV viewing

quote:
is still C-Band, period. It's you own cable head end, what the cable companies and small dish companies use to get their signal they send to you, without the miles of cable with rusted cable ends, or rain fade from the small dishes. If you have the place to put a BUD (Big Ugly Dish) it's the best TV viewing available.
I agree
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