Business Week article tonight. Read "$1,200 A HEAD" :
businessweek.com
"All told, DirecTV would pay about $1,200 for each subscriber, far less than the $1,700 to $2,220 value implied in recent deals, analysts say. DirecTV is likely to get only about two-thirds of PrimeStar's subscriber base over a transition period lasting 18 months, sources say. Echostar, which already offers retailers a "bounty" of more than $200 for each PrimeStar subscriber conversion, is likely to get the rest, analysts say. Still, "this deal will enhance DirecTV's critical mass and is a winner for PrimeStar, too," says analyst Jimmy Schaeffler of Carmel Group, a market researcher. " |
