November 1, 2002 - Justice Department action kills EchoStar-DirecTV merger
The Justice Department filed a lawsuit Thursday blocking the EchoStar-DirecTV merger that would have combined the only two remaining satellite television companies.

Earlier this week, Littleton-based EchoStar Communications Corp. (Nasdaq: DISH) proposed a new plan that was meant to make it easier for new satellite competitors to enter the market.

EchoStar was going to give broadcast spectrum to Cablevision Corp. as a peace offering to regulators, but it wasn't enough to salvage the deal that would have combined 18 million subscribers.

DirecTV is owned by General Motors' Hughes Electronics. Earlier this month, the Federal Communications Commission nixed the deal because of anti-trust issues and EchoStar responded with a plea to the Justice Department.

"We continue to believe passionately that the merger of EchoStar and Hughes is the best chance to stop rising cable prices and to bring enhanced services to all Americans, especially those consumers living in rural America," EchoStar CEO Charlie Ergen said in a statement. "We are obviously disappointed that at this time we have not been able to convince regulatory officials to share our vision. EchoStar will continue to explore all possible means to be allowed to compete against the cable giants and for more choice for all consumers."

Others were pleased to hear the Justice Department decided to block the merger.

"I'm happy to hear that the Department of Justice is on the side of rural America," said U. S. Rep. Chris Cannon, R-Utah. "By blocking this merger, the DOJ has guaranteed that no matter where Americans live, they will have at least two choices in their access to television and other digital services."