News & Analysis
DIRECTV CEO Discounts Dish Network Merger
By Swanni

Washington, D.C. (May 27, 2011) -- DIRECTV CEO Mike White yesterday discounted talk that his company will merge with satellite rival Dish Network.

In an interview with CNBC, White suggested that federal officials might not be inclined to support a merger. In 2002, the Federal Communications Commission rejected a DIRECTV/Dish Network merger on the grounds that it would be anti-competitive.

"It's a pretty tough hill to climb," Hill told the financial TV network, referring to today's environment in Washington.

Hill's comments contrast sharply with remarks made by Dish CEO Joe Clayton in an interview with Bloomberg News. Clayton suggested that a merger could happen, although he conceded there were not talks under way.

“I don’t discount any possibility,” Clayton said. “It’s probably easier from a regulatory environment today than it was 5 to 10 years ago, when it was originally proposed. We’re looking at anything that will help enhance shareholder value."

Swanni Sez: Commentary
If the two execs' comments can be taken at face value, it would appear that it's clear which company is the suitor here. Dish probably needs a merger more than DIRECTV, although the latter has flirted with AT&T and others about a possible sale.

I wouldn't write off White's remarks as the final chapter here. A merger could still happen, but due to egos and logistics, it's a long way from here to there.

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