CASPER
New member
Liberty says Dish Network merger 'problematic'
DirecTV controlling shareholder says a Dish Network merger would be 'problematic
August 11, 2008: 05:48 PM EST
NEW YORK (Associated Press) - Liberty Media Corp., the controlling shareholder of DirecTV Group Inc., said Monday that a merger with Dish Network Corp. would be "problematic" since the regulatory climate that felled a previous attempt at combining hasn't changed.
"It would be very synergistic if it were doable. However, we don't see that the regulatory environment has changed since the last time we made comments on the subject," said Liberty Chairman John Malone in a conference call with analysts.
"We think it would be problematic to try and merge the two companies in the current regulatory environment," he added.
The Wall Street Journal reported last week that Englewood, Colo.-based Dish is again considering a merger with DirecTV, encouraged by last month's regulatory approval of a combination between the nation's only two satellite radio companies, Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.
The news report came as Dish reported a 25,000 net subscriber loss in the second quarter, the first decline in the company's history.
Last week, Chase Carey, DirecTV's chief executive, also dismissed reports of revived talks about a combination in the company's earnings conference call.
In 2001, Dish's former parent, EchoStar Communications Corp., announced plans to buy Hughes Electronics Corp. and its DirectTV unit from General Motors Corp. for $26 billion. DirecTV is now a separate, publicly traded company in which Liberty Media owns an over 49 percent stake.
El Segundo, Calif.-based DirecTV and Dish called off the deal in 2002, after it had trouble getting regulatory approval due to antitrust concerns. A controlling stake in DirecTV was later sold to Rupert Murdoch's News Corp. Two years ago, News Corp. swapped its interest in DirecTV, other assets and cash for Liberty's 16.3 percent stake in the media conglomerate.
.
DirecTV controlling shareholder says a Dish Network merger would be 'problematic
August 11, 2008: 05:48 PM EST
NEW YORK (Associated Press) - Liberty Media Corp., the controlling shareholder of DirecTV Group Inc., said Monday that a merger with Dish Network Corp. would be "problematic" since the regulatory climate that felled a previous attempt at combining hasn't changed.
"It would be very synergistic if it were doable. However, we don't see that the regulatory environment has changed since the last time we made comments on the subject," said Liberty Chairman John Malone in a conference call with analysts.
"We think it would be problematic to try and merge the two companies in the current regulatory environment," he added.
The Wall Street Journal reported last week that Englewood, Colo.-based Dish is again considering a merger with DirecTV, encouraged by last month's regulatory approval of a combination between the nation's only two satellite radio companies, Sirius Satellite Radio Inc. and XM Satellite Radio Holdings Inc.
The news report came as Dish reported a 25,000 net subscriber loss in the second quarter, the first decline in the company's history.
Last week, Chase Carey, DirecTV's chief executive, also dismissed reports of revived talks about a combination in the company's earnings conference call.
In 2001, Dish's former parent, EchoStar Communications Corp., announced plans to buy Hughes Electronics Corp. and its DirectTV unit from General Motors Corp. for $26 billion. DirecTV is now a separate, publicly traded company in which Liberty Media owns an over 49 percent stake.
El Segundo, Calif.-based DirecTV and Dish called off the deal in 2002, after it had trouble getting regulatory approval due to antitrust concerns. A controlling stake in DirecTV was later sold to Rupert Murdoch's News Corp. Two years ago, News Corp. swapped its interest in DirecTV, other assets and cash for Liberty's 16.3 percent stake in the media conglomerate.
.