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Could DirecTV, Dish Revisit Merger Plans?

8/04/2008 09:02:00 AM

Of course, the hard part now begins for Sirius XM Radio. With the former rivals now one company, they will have to make a profit while satisfying existing customers and attracting new ones. We will hear about how they plan to do that, and what their current financial status is, when Sirius XM Radio issues its first financial report on Thursday, Aug. 7.

The implications of the Sirius XM merger may revive efforts to merge DirecTV and Dish Network on the video side of the street. DirecTV and Dish tried to merge once, and then there were rumors of it a second time in 2007, but nothing came of it.

But the view of Carmel Group principal analyst Jimmy Schaeffler it that the successful Sirius XM merger could rekindle interest in such a move.

There has been no tangible evidence of either side trying to strike up a conversation, but if trends continue, like Dish Network reporting it lost 25,000 subscribers in its second quarter, something may give. Stay tuned.

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