AVS Forum banner

Status
Not open for further replies.
1 - 10 of 10 Posts

·
Registered
Joined
·
208 Posts
Discussion Starter #1
NEW YORK (Reuters) - Rupert Murdoch's News Corp. said late Saturday it was withdrawing its proposal to merge satellite television service Hughes Electronics Corp (NYSE:GMH - news) with its own global network of satellite services, after Hughes parent, General Motors (NYSE:GM - news), failed to choose a buyer for the service in a meeting.


Full News Release:
http://dailynews.yahoo.com/h/nm/2001...ghes_dc_3.html
 

·
Banned
Joined
·
93 Posts
Smart move by Murdoch. No way that DOJ will approve DISH to take over DirecTV leaving only one DBS company in the US.


Murdoch figures he can pick DirecTV at a much lower price as the economy continues to whither.


New times. How about if the FCC buys it? Pumps about $20 billion into the economy and gives all content players equal access. When the economy picks up, the FCC could auction DirecTV off to the highest bidder, other than DISH.
 

·
Registered
Joined
·
619 Posts
It's too early to know is Dish wins, but are the owners of the RCA HD sets w/integrated DirectTV receivers starting to worry?
 

·
Registered
Joined
·
555 Posts
It will be bought by bin Laden so that he can broadcast 225 channels of radical Muslim religion to the US 24 hrs per day. It would be part of his plan to turn the US into a Taliban utopia.
 

·
Registered
Joined
·
46 Posts



Um, I don't know if you've noticed, but there is a conservative Republican in the White House. The DOJ will rightly recognize the fact that it is not a two company industry, but one that encompasses cable as well. Providing DISH gets the LOC, and the indecisive GM board gets its act together, the deal WILL go through.
 

·
Registered
Joined
·
1,120 Posts
I agree rural doesn't have cable competition, but rural still benefits from SAT and would see mostly benefits from a combined company...


Why you might ask? Because unless they change the philosophy of pricing SAT, you get the same price no matter where you live (minus DirecTV and the SE). So in order to compete with the cable companies downtown, a combined Dish/Direct would have to keep their pricing strategies as is - thus benefiting and keeping a lid on rural prices. We need to remember that Sat competition is cable, not each other, and that rural simply benefits from the non-land locked nature of SAT. Besides, Charlie has stated that he would allow for requirements and some protection for pricing - in other words, we'd keep our pricing as is and not impact the only area where competition goes away - rural.


Chris
 

·
Registered
Joined
·
1,050 Posts
Unless the FCC were to change it's position on satellite must carry, they'll approve this deal because it's a win for rural consumers, despite the antitrust concerns.


I live in the 46th DMA about 45 miles away. There are four stations that are less than ideal, but the market is too far down the chain for DirecTV or Dish to consider. So to get better reception farmers in my area have no real options, other than installing a 50 foot tower antenna. With the combined capacity of both services and spot beam birds in the sky, nearly every channel in every market in the country could be carried. That doesn't mean they will, but at least the potential is there.


People talk about the antitrust concerns with Echostar, but you have a very real antitrust concern with New Corp. -- namely programming. With 10 million viewers, Fox broadcast and cable operations, 20th Century Fox, exclusive sports deals, etc., Murdock could squeeze not only cable, but film distribution and ultimately internet access by fixing the prices of his content in a way that it's favorable to his satellite services. With this much power, including his owned and operated stations, a massive percentage of America's bandwidth would be concentrated in foreign hands.


Here are two additional scenarios:


1) Echostar wins and completes the transition to a point where all set top boxes are compatible. The combined company is providing more HD than we ever dreamed of and still carrying all the local channels per must carry. Every sports event is offered in HD. News Corp. buys them and integrates the combined company into its global operations.


2) GM's board goes back to Murdock and says, "We didn't mean to run you off, we'll take the deal." Murdock assimilates DirecTV and combines it with his global operation. Echostar continues to compete, eventually becoming wildly profitable. News Corp. buys it and integrates Echostar into its global operations.


Just my nickel and a half... :)


Dennis
 
1 - 10 of 10 Posts
Status
Not open for further replies.
Top