FCC nixes merger. (Vidbits).(Direct broadcast satellite providers cannot merge)

Video Business, October, 2002

The Federal Communications Commission last week declined the proposed merger between direct broadcast satellite providers DirecTV Inc. and EchoStar Communications, all but killing chances of the deal going through. The deal is still being reviewed by the antitrust division of the Justice Department, but it's unlikely it would approve the merger after it has been rejected by the FCC.

The companies still have the option of arguing their case before an administrative law judge. In a joint statement, EchoStar and DirecTV said, "We will continue to work aggressively within the context of this FCC process to achieve approval of the merger." The apparent collapse of the planned merger opens the way for News Corp. to re-enter the scene as a possible buyer of DirecTV.