And What Happens with DISH?

[Gregg Lengling]

With a merger deal in place between Hughes/DirecTV and News
Corp., what's expected to happen to Charlie Ergen and EchoStar?

Merrill Lynch satellite analyst Marc Nabi said DISH shares
could see near-term weakness if and when the DirecTV/News
Corp. deal is closed. However, long-term, "We believe the
market will further justify EchoStar's premium valuation since
it will be the only independent national multichannel
television footprint remaining with the fastest subscriber and
free cash growth profile across the pay-TV industry," Nabi
said in a research note.

And don't be surprised if Ergen, chairman and CEO at EchoStar,
"would sell all or a portion of his 242-million share stake"
to a vertically integrated media or telecom company, Nabi
said. Ergen has 48 percent economic/90 percent voting control
of DISH. If he sold out, Nabi said he envisions a deal struck
in the next 12 to 24 months.

News Corp. Chairman Rupert Murdoch doubted Ergen would exit
the satellite TV business. "He would be lost without
EchoStar," he said Wednesday. "He lives that business and he
runs it very well."

EchoStar said its executives are traveling out of the country
and could not be reached for comment concerning the
Hughes/News Corp. deal.