Saving EchoStar deal

摘要

On Oct. 10, the FCC "declined to approve" EchoStar's proposed acquisition of its competitor, DirecTV, and gave the parties 30 days to redo the deal to ameliorate its competitive concerns. Can EchoStar Chairman Charlie Ergen overcome these regulatory objections? Perhaps more interesting, will Hughes Electronics, DirecTV's parent, give him the opportunity to do so? The battle now shifts to the negotiating tables at the FCC and the Department of Justice, which has also been evaluating the merger. Though normally "going first" in major media mergers, the DOJ still has a role here. If EchoStar and Hughes can get the DOJ to sign off on a last-minute divestiture plan (a big "if" since its staff has also expressed skepticism), the FCC will probably approve the revised merger.