A DISH Network Corp. (DISH)/DIRECTV (DTV) Merger Would Be Golden

Ergen clearly believes the industry is moving away from pay-TV all or nothing programming bundle, and he has expressed admiration with what Netflix has done with House of Cards. Even if the two companies do not merge, we would not be surprised to see DISH Network Corp. (NASDAQ:DISH) enter the content space, but deeper pockets could give a combined company an even greater chance at success, as well as a greater audience (approximately 34 million householders) to charm. Even if the industry remains in flux, Ergen’s adaptability and increased financial flexibility, could allow a new company to thrive.

Feasibility

There’s little doubt, in the view of our team at Valuentum, that Ergen wants to merge his company with DirecTV. He tried over 10 years ago, but the FCC and regulators rejected the deal on the premise of monopoly creation. We think the environment is completely different now due to the rise of chord cutting, but it’s hard to ignore the regulatory hurdles that have stifled mergers in the past few years.

DIRECTV (NASDAQ:DTV) CEO Mike White indicated that a merger would be “pro-consumer” due to the rising costs of content. In our view, DirecTV also sees the logic and appeal of a deal, and we are pretty optimistic that both sides would want to get a deal done. Both firms look fairly valued at this time, but we think a deal between the two would create a much more attractive combined entity. We’ll keep a close eye on the situation.

The article A Dish/DirecTV Merger Would Be Golden originally appeared on Fool.com and is written by RJ Towner.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Top Reasons For Getting Fired

The 3 Best States to Start an LLC

10 Jobs That Allow You to Travel

7 High-Paying Jobs You Can Do From Home

12 Best Cities to Shop in USA

10 Best States To Practice Medicine

The 10 Best States to Have a Business

The 12 Most Expensive Apple (AAPL) Apps in the Market

The 10 Richest Billionaires in the World

10 Biggest Kickstarter Failures

The 10 Best Places to Work At

The Top 10 of Google Inc (GOOGL)’s Most Expensive Acquisitions

13 Best Cities to Visit in South America

10 Most Expensive Works of Art of All Time

The 10 Richest Banks in the World

The 10 Best-Paying Jobs in America (2014)

7 Most Expensive Foods in the World

The World’s Top 10 Earning Authors

Five Wicked and Very Expensive Items (and Other “Stuff”) Sold on eBay

10 Biggest Celebrity Bankruptcies

The Top 10 Highest Paid CEOs in 2014

The 10 Most Expensive Real Estate Cities in America

10 Most Expensive States To Live In America

The 10 Best Airlines in the World

The 10 Best-Selling Cars in 2014

The 10 Best Industries to Invest In

The 10 Most Expensive States to Own a Car In

Top 10 Business Schools in US: 2014 Rankings

Top 20 Female Billionaires in 2014

6 Movies That You Should Watch to Better Understand The Cold War

Top 15 Best Paying Jobs for Women in 2014

Top 6 Things Rich People Do Differently Every Day

5 Retirement Mistakes To Avoid (and Einstein’s Famous Quote)

11 Smartest People in the World

6 Films About the Financial World You Need To Watch (While “The Wolf” is Not Around)

Warren Buffett and Billionaires Are Crazy About These 7 Stocks

The Top 10 States With Fastest Internet Speeds

10 Best Places to Visit in USA in August

Top 10 Cities to Visit Before You Die

Top 10 Genetically Modified Food In the US

15 Highest Grossing Movies Opening Weekend

5 Best Poker Books For Beginners

10 Strategies Hedge Funds Use to Make Huge Returns

Top 10 Fast Food Franchises to Buy

10 Best Places to Visit in Canada

Best Summer Jobs for Teachers

10 Youngest Hedge Fund Billionaires

Top 10 One Hit Wonders of the 90s

Fastest Growing Cities In America

Top 10 U.S. Cities for Freelancers

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!