While Wall Street has speculated that AT&T Inc. may make a play for EchoStar Communications Corp., Deal Journal, citing an unnamed source, said AT&T may prefer larger satellite TV service DirecTV Group Inc.
Deal Journal suggests two reasons why EchoStar is an unlikely target: founder and CEO Charles Ergen and EchoStar's restructuring. However, the restructuring that will separate its hardware business from its satellite TV business could make it an easier takeover candidate for anyone simply looking for the satellite business, which is exactly what AT&T is reportedly interested in buying.
Deal Journal suggests a DirecTV deal also comes with complications, namely News Corp.'s plan to sell its 39% stake to John Malone, who has experience with AT&T, having sold it his cable company, TCI. Some may suggest that the prior relationship would sour a deal, but who knows. After all, it is a "new" AT&T. — Matthew Wurtzel
See story from Deal Journal
See related story from Dow Jones via CNNmoney
See EchoStar restructuring story from TheDeal.com
See AT&T CEO Randall Stephenson profile from TheDeal.com
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