Report: AT&T May Buy EchoStar
The Street.com reports that buyout talks are underway.
By Swanni
That's according to an article today from TheStreet.com.
The web site reports that AT&T has offered $55 a share, while the satcaster may be holding out for $65 a share.
The deal would seem to make sense for both companies.
EchoStar is under pressure to increase spending on several initiatives, including High-Definition TV, to keep pace with rival DIRECTV and the cable operators. AT&T could supply the financing, for instance, for EchoStar to launch new satellite to expand high-def capacity.
Meanwhile, AT&T's TV service, u-Verse, has just broken the 100,000 subscriber mark after more than two years. Buying EchoStar would give the telco more than 13 million video subscribers overnight.
TheStreet.com says Oppenheimer analyst Tom Eagan has raised his rating on EchoStar in anticipation of a AT&T deal. He believes AT&T would likely pay about $56 a share for the satcaster.
Both companies declined to comment on Thursday, TheStreet.com reports.
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