![]() Eagan, in fact, contends that when it comes to AT&T buying EchoStar it is "a matter of when, not if." Consistent with the rumormongers at TheStreet, Eagan says DISH could be worth $56 in a takeout. ![]() And given the fact that AT&T has for some time now been reselling DISH service to its customers, buying the company has a certain logic. Thomas Eagan, an analyst at Oppenheimer, last week raised his rating on EchoStar to Buy from Hold, and asserted that, given the lack of success AT&T is having with U-verse so far, the company needs a new strategy. Some skeptics think AT&T ought to make a U-turn on U-verse (Ma Bell's video service), which is costing the company billions to build. As noted in my Tech Trader Daily blog, that "news" had the stock on the rise late last week. In fact, last week reported that AT&T has offered to buy the company for $55 a share. The other oft-rumored potential suitor for the company is Yet rumors of a second attempt to combine with DirecTV resurface periodically, and cropped up again last week - more on that in a moment. (DTV), but the deal was struck down by federal regulators for antitrust reasons. In 2002, the company had agreed to merge with chief rival This is hardly the first time EchoStar's been considered a potential seller. The Nasdaq Composite Index finished Friday at 2702, up 1.1% for the week and about 4% for the month and quarter. Tech-Crazed: Investors are mad for tech stocks like Apple and Research In Motion. Finally, it's possible that the two announcements are a prelude to another bigger one: an acquisition of the DISH Network. And splitting off the technology business opens up new prospects, like supplying set-top-box software and even hardware to other service providers. Why? The DISH Network as a stand-alone business is expected to get a higher multiple, since it will be less capital-intensive than while buried inside today's Echostar. What does it all mean? For starters, it means EchoStar shares are worth more today than they were a week ago. The other unit will consist of the company's remaining assets, which include spare satellite capacity and related ground stations, set-top box manufacturing and design assets, and Sling Media. I'd bet one will be called DISH Network, since that will be its entire business: operating the consumer satellite-television service. It's like the flip side of what the DVR allows, which is "time-shifting." EchoStar (ticker: DISH), which was an early investor in Sling Media, is paying $380 million in cash and stock options for the rest of the company.Īnnouncement two was that EchoStar is planning to split into two companies, so far unnamed. ![]() The concept is called "place-shifting" - a Phillies fan with Comcast service could sit in a hotel room in Boston, Barstow or Barcelona, plug in her PC, and watch Harry Kalas calling another Ryan Howard home run: ("That ball is outta here!"). First, the company revealed plans to acquire Sling Media, maker of the Slingbox, a nifty device that allows you to watch video from cable, satellite service or even a DVR on any PC or handheld device with broadband Internet access.
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