EchoStar Shares Up on Merger Speculation

ENGLEWOOD, July 18: The share price of satellite-TV operator
EchoStar Communications rose to a 17-month high yesterday following speculation
that DIRECTV majority shareholder News Corporation is mulling a bid for the
company.

A merger of DIRECTV and EchoStar’s DISH Network would
certainly ruffle the feathers of anti-trust authorities, which blocked
EchoStar’s attempt to acquire DIRECTV from Hughes back in 2002. News Corp.
eventually won the battle to acquire DIRECTV, the leading satellite platform in
the U.S.

However, reports indicate that a case could be made that a
merged satellite operator could more effectively take on competition from cable
TV platforms and telcos rolling out triple-play services.

For News Corp. to acquire EchoStar, it would need to gain
the support of EchoStar’s chairman and majority shareholder, Charles Ergen, who
reportedly controls more than 90 percent of the company’s voting-share power.