Various media outlets are reporting that U.S. Direct-to-Home (DTH) satellite operators Echostar and DirecTV are engaging in possible merger talks. The merger will create a monopoly of DTH services in the U.S., which is the second largest DTH market in the world with 34 million subscribers.
DirecTV has 20 million subscribers in the US and Dish Network 14 million. Shares of Dish Network and DirecTV rose last following the possible merger reports.
According to Bloomberg, Dish chairman Charlie Ergen recently reached out to DirecTV CEO Mike White. Dish and DirecTV declined to comment.
The news follows Comcast's announcement last month that it had agreed to buy Time Warner Cable for US$ 45 billion in a deal that would combine the two biggest cable companies in the United States. The firms will likely face antitrust scrutiny from regulators, who could block the deal. A previous merger attempt by the two companiesin 2002 was rejected by US regulators.
Bloomberg said Ergen approached White and Time Warner Cable in response to the Comcast deal. White, the news service added, "is reluctant to push forward with formal talks out of concern regulators may block the deal because the two companies directly compete with each other."
The news follows Comcast's announcement last month that it had agreed to buy Time Warner Cable for US$ 45 billion in a deal that would combine the two biggest cable companies in the United States. The firms will likely face antitrust scrutiny from regulators, who could block the deal. A previous merger attempt by the two companies in 2002 was rejected by US regulators.
