"Primestar and the govt. say they have begun serious negotiations to settle a federal lawsuit challenging the company's proposed combination with Rupert Murdoch's new dbs venture". As reported on Bloomberg news.
Nice to hear from you Goodboy.
TSATA investors, writing is on the wall. Goodboy is correct, DOJ case doesn't hold H20. It's all based on one memo between Malone and Murdoch. It was a stretch to infer from this memo that cable owners would not aggressively compete. With cable guys gone, the case is null and void. Don't believe DOJ wants case to go to trial.
Also agree that $10 is a fair value, working out to somewhere around $1500/sub. (=ave cable multiple.) However, Depending on exact terms and market volatility TSAT could trade to $2000/sub which could bring us to $15-$20 range.
Bird issue is another important value point. TSAT owns 2 unused, 1 on ground, 1 in air, ASKYB owns 2 on ground. GMH and DISH currently have problems which could get worse and place a large premium on constructed, unlaunched birds.
Currently, everyone is forgetting about the value points, instead focusing on subscriber growth, hence, DISH strong share price. 1- value points always come into play at some point. 2-Sept. sub. numbers for Primestar will be great showing that medium power can still attract customers. |
