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A DirecTV/Dish Merger Won't Bring Big Synergies: MoffettNathanson

Based on news reports, DirecTV and Dish Network are talking about a merger again. Yet MoffettNathanson's Craig Moffett noted Monday that such a deal would likely not face big regulatory challenges, and synergies might be limited. The satellite fleets have…

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different scrambling technology, so synergy would come only after replacing one or another's set-top boxes, he said. There also isn't much churn to be eliminated from customers back and forth between the two companies, as both see few gross additions. A merger "clearly should" happen, given the secular decline of their subscriber bases, "but it would be a mistake to overestimate its importance."