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.

Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The 10 Largest Pharmaceutical Companies In the World

The 10 Most Expensive Android Apps

The 9 Most Expensive Designer Bags in the World

The 7 Most Expensive Real Estate in the World

The 10 Most Expensive eBay Items Ever Sold

The 10 Most Expensive iPhone Apps

The 9 Most Expensive Designer Shoes in the World

The 10 Most Expensive Cigarette Brands

The 10 Most Expensive Law Schools in the US

The 10 Best Wall Street Movies

The 10 Most Expensive Golf Clubs Ever Sold

The 10 Most Expensive Golf Memberships

The 10 Best Disney Characters Ever Created

The 8 Best Foods for Gaining Weight

The 10 Most Expensive Colleges in the World

The 7 Most Memorable Ad Campaigns of All Time

The 7 Most Expensive High Schools in the World

The 10 Electric Vehicles with the Longest Range

The 10 Cities with the Worst Drivers in the World

The 10 Most Expensive Dresses Ever Created

10 Islands to Visit Before You Die

10 Famous Celebrities Who Needed Rehab

The 15 Countries with the Largest Oil Reserves

The 10 Most Overused Excuses in the World

The 5 Best iOS Apps You Can’t Get on Android

5 Companies Damaged By Social Media Blunders

The 10 Most Legendary Blues Songs

The 10 Most Lawless Places in the World

4 Reasons China is a Threat to the US

The 17 Most Sugary Drinks in the World

The 10 Most Ruthless Rulers in History

The 10 Greatest Generals in History

Top 8 Travel Destinations for 2015

The 10 Safest Dog Breeds for Children

The 10 Most Stolen Vehicles in the US

The 7 Most Expensive Celebrity Weddings

The 10 Best LoL Teams in the World

Top 10 Worst Marketing Campaigns Ever Produced

Top 5 Diets that Help You Lose Weight

The 10 Best Ways to Stay Awake

7 Artists That Switched Musical Genres

The 10 Most Expensive Cities to Live in New Jersey

The 10 Best High Schools in New York

The 10 Countries With the Least Gender Inequality

The 6 Biggest Musician-Manager Feuds

The 10 Countries with the Cheapest Gas Prices

The 7 Most Theatrical Bands of All Time

The 8 Worst Band Breakups of All Time

The 10 Most Important South American Leaders

The 7 Most Successful Casting Show Winners

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!