EchoStar to meet with Hughes

NEW YORK - EchoStar's attempt to muscle in on News Corporation's bid for DirecTV has taken a significant step forward with the news that it has had its first face-to-face meeting with officials of Hughes, the General Motors division which owns DirecTV.

The meeting is understood to have been the first between EchoStar chairman and chief executive Charles Ergin and Hughes since EchoStar made its move.



Ergin will outline his $27bn (£18.6bn) proposal, which would see EchoStar merge with DirecTV, its larger rival in the US satellite pay-TV market.



EchoStar's offer is believed to be less attractive than that of News Corp's, as it would likely attract a lengthy competition inquiry because a merger between DirecTV and EchoStar would create a dominant satellite pay-TV organisation.



Ergin, however, is expected to defend the deal on the grounds that the pay-TV market includes other platforms such as cable, and these should be taken into account when examining the pay-TV sector.



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