A T & T May buy Echostar

[LEN]

Report: AT&T May Buy EchoStar
The Street.com reports that buyout talks are underway.
By Swanni
 
Washington, D.C. (September 27, 2007) -- AT&T has offered to buy EchoStar, the nation's second largest satellite TV service.

That's according to an article today from TheStreet.com.

The web site reports that AT&T has offered $55 a share, while the satcaster may be holding out for $65 a share.

The deal would seem to make sense for both companies.

EchoStar is under pressure to increase spending on several initiatives, including High-Definition TV, to keep pace with rival DIRECTV and the cable operators. AT&T could supply the financing, for instance, for EchoStar to launch new satellite to expand high-def capacity.

Meanwhile, AT&T's TV service, u-Verse, has just broken the 100,000 subscriber mark after more than two years. Buying EchoStar would give the telco more than 13 million video subscribers overnight.

TheStreet.com says Oppenheimer analyst Tom Eagan has raised his rating on EchoStar in anticipation of a AT&T deal. He believes AT&T would likely pay about $56 a share for the satcaster.

Both companies declined to comment on Thursday, TheStreet.com reports.

[gparris]

Thanks for the info, there is some info about this on the EngadgetHD site, too.

AT&T's cashflow would provide some more HD channels to compete directly with other providers and offer more HD locals, like including the Milwaukee market, too.

I can see a marketing effort about wireless solutions:

(HD)TV and Cellular service, "No Wires Required!"

Maybe they'll throw in satellite internet, too, for that "all-in-one" package thing.

[LoadStar]

Frankly, this would be an excellent idea for AT&T... because in my opinion, AT&T should officially scrap U-Verse TV, except as a "backup" service for those who cannot receive satellite. The technology just isn't there to be able to support it.

Actually, I'd transition U-Verse TV to being a component of EchoStar's satellite service; deliver additional content like on-demand video via the U-Verse service, but the primary television delivery method should be the dish.

[gparris]

So...if I got you correctly on this, LoadStar, the service for U-Verse and Dish would have to overlap for downloading, meaning that AT&T DSL lines would, at very least, be in range for this to properly function, anyway...okay.
Maybe, on the other hand, U-Verse will improve its business model to include at least 2 HD channels at a time per premises and that will work out better.
Either way, I think they will continue expansion next year with both items on their list of offerings if and when the deal goes through and is finalized.
Their (HD)TV "footprint" will get much larger, faster with Dish and probably less expensive in overall outlays in the long run, too.

[LoadStar]

Yeah, I suppose I didn't think about the fact that AT&T doesn't have service everywhere that Dish Network does. Hrm. Never mind. Either way, U-Verse sucks. :p

[Bebop]

Big fish eating the little fish? Echostar just bought the maker of Slingbox.