# GM Wins Tax-Free Status for DBS Merger



## dswoody1 (Apr 17, 2002)

GM Wins Tax-Free Status for DBS Merger

http://www.tvinsite.com/index.asp?layout=print_page&doc_id=94063&articleID=


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## AJ2086 (Jun 1, 2002)

Is this a positive sign of the merger approval? I hope to god it is!


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## AllieVi (Apr 10, 2002)

> _Originally posted by AJ2086 _
> *Is this a positive sign of the merger approval? I hope to god it is! *


Don't read anything regarding the merger prospects into the announcement. It's simply a determination by the IRS of how it would treat a merger, nothing more. To think otherwise, one would have to believe that an element of the government has a clue about what another element is doing.

I hope to hell the merger *doesn't* happen!


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## Randy_B (Apr 23, 2002)

> _Originally posted by AllieVi _
> *. . . one element of the government has a clue about what another element is doing. *


HAHAHA:rolling: Like that could happen in this plane.


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## Scott Greczkowski (Mar 21, 2002)

The merger will be approved. I have heard that the FCC is now working on some guidelines that Echostar must adhere to in order to get approval (such as how many local cities must get added per year untill all 210 DMA's are available)

If and when Echostar gets these guidelines I do believe that the merger will be approved by the FCC.

Next up the Department of Justice will then give their nod.


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## bogi (Apr 3, 2002)

I hope not hopefully the recent scandals will stop the merger.


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## Jacob S (Apr 14, 2002)

Maybe someone will go and investigate to make sure they are not 'lying' and if they did in fact 'lie' then it will hurt their chances of a merger and hurt their business and stocks.

I figure that they will make the new merged company add all of these channels in less time than the timeframe that Charlie said these channels would be added.


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## garydw (Apr 22, 2002)

What scandels?

The merger, should be approved....and I belevie it will be


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## Jacob S (Apr 14, 2002)

If they guarantee a nationwide pricing structure just as Charlie did and with all of these benefits such as locals, cheaper high speed internet access, and more channels, then it should be granted. This will in fact save people money in internet fees and when they combine this with satellite they may give customers a discount.


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## Guest (Jul 13, 2002)

Why are you all doing as if the merger is going to be a good thing? As a Directv customer, I hate the idea of Echostar being shoved down my throat. Now I might have to actually seriously consider cable. This merger is going to make them lose subscribers if they make Echostar's crappy equipment the standard.


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## Jacob S (Apr 14, 2002)

It is GUARANTEED that they will in fact lose customers for several reasons, one - some will not be able to receive the signal from that slot that they will use especially if they use the Dish Network slot - two - some will not want Dish Network or DirecTv whatever will be used - three - some will like the equipment they have and not want to switch, and so on and so on. Some will not even want to have anythign to do with a merged company fearing price increases. Others will be happy and do it bc of locals. In the long run this will help sales if they keep prices down bc they will have the locals and more channels.


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## Karl Foster (Mar 23, 2002)

> _Originally posted by DTV user _
> *Why are you all doing as if the merger is going to be a good thing? As a Directv customer, I hate the idea of Echostar being shoved down my throat. Now I might have to actually seriously consider cable. This merger is going to make them lose subscribers if they make Echostar's crappy equipment the standard. *


I couldn't agree more. Someone who is in favor of the merger, explain to Directv subs why they should jump on the merger bandwagon. Here is what I see happening if the merger is approved:

1. Loss of competition and increased programming pricing. Without another DBS company to compete against, what will stop them from raising prices or dropping stations? Think your local cable company.

2. Equipment stagnation. I see no new innovation in equipment design. E* subs owe the design of the 721 to D*. Without customers leaving E* to D* for good PVRs, their development folks would have had to reason to develop the 721. We that have Directv equipment are a little nervous about the drop in equipment quality. Without direct DBS competition, what incentive will the new E* have to develop new technologies?

I am having a hard time getting behind the merger as it offers nothing I don't already have.

I also have another gripe. The local dealers selling E* in my area are going full-out to convert D* subs over by outright lying to them. I had another one today tell me that I should convert now to avoid having to buy new equipment later. Ugh! It is getting old.


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## garydw (Apr 22, 2002)

But without the merger, we will not see much more added to eiter service.

I am for the merger, and I have sent my support to all of congress, the FCC and the justice department. In the form of e-mail, faxes, and a personal letter to each person invoiled.


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## AJ2086 (Jun 1, 2002)

They wont raise there prices alot. They still have cable to compete with. And with more HDTV comming out and more cable companies getting it they are becomming a good competetor for DBS in some areas. And if the whole nation has to have 1 rate plan that mean is its 30 bucks in NYC to compete with cable then it will be 30 bucks in an un known town with no cable. So there will be competetition.


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## Karl Foster (Mar 23, 2002)

> _Originally posted by AJ2086 _
> *They wont raise there prices alot. They still have cable to compete with. And with more HDTV comming out and more cable companies getting it they are becomming a good competetor for DBS in some areas. And if the whole nation has to have 1 rate plan that mean is its 30 bucks in NYC to compete with cable then it will be 30 bucks in an un known town with no cable. So there will be competetition. *


The DBS companies already have level pricing. It costs me the same here in po-dunk Utah as it costs in NYC.

In some areas (like mine) there is no digital cable service available. I have one choice for digital tv - DBS, so a merger creates a monopoly. When was the last time a monopoly offered good service to the customers? My situation cannot be unique. I live in a city of 100,000 and no digital cable. In many areas in our state, there is no cable at all, so there is only one choice for any type of quality tv service - DBS.

Maybe in the eastern US where towns and cities are close to each other, digital cable is available for everyone, but here out west, it just isn't.

Give the consumers choices. No choice = bad service, especially in rural communities. Nobody has convinced me yet of the merits of the merger for D* subs, so I'll stay opposed for now.


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## AJ2086 (Jun 1, 2002)

Well when the merger happens E will have to give up 148 and 65 probably and everything will move to 110 101 and 119. So with those slots open new companies will come. Just new E will be the better of them.


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## Geronimo (Mar 23, 2002)

First of all it does not cost the same in E Podunk as in the big city. The NRTC affils control DTV pricing in rural areas and it is not necessarily what you pay in your town. In fact Pegasus claims they will CONTINUE to set pricing after the merger but I am only reporting that as theirr contention not as fact.


Second I ahve seen nothing that indicates that E will have to givwe up any slots. They do not in fact own 61.5 today. It is as good a specualtion as any but that's all it is.


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## Richard King (Mar 25, 2002)

Since Pegasus stock is now selling for under $1.00 per share, there is always hope that they will simply go away after the merger. With a total market cap of only $55Million, they could be bought out by Dish for petty cash after the merger.


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## Jacob S (Apr 14, 2002)

If the government would allow Pegasus to be bought out, just like they would have to approve this Direct/Dish deal. It would be better for the Pegasus customers. What kind of system would the Pegasus customers run off of and who would pay for their equipment switchout during that time? Maybe there would not be much of a choice seeing as there would be a cost for this and Pegasus would not have an advantage in doing so like Dish/Direct would.


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