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Forums » Dish, DirecTV Merger Speculation » Small investors should avoid buying stock on merger rumors
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Monopoly? I think so.. »
« Not surprised....they have no choice  
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edward50
Premium
join:2006-06-10
Brookfield, MO

reply to GenBlood
Re: Small investors should avoid buying stock on merger rumors

"We will get lower prices"

There is no reason to believe lower prices would be a result of any merger. Why would share holders allow such a thing to happen? The loss of competition would give the company no incentive to lower prices. The only real effect I see is a loss of consumer choice. When has this ever been a good thing? In markets where satellite service is the consumers only choice (especially very rural areas) their options would be one satellite service or nothing at all. How is this a benefit?


cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN

Dish/DirecTV are competition companies, but more with cable then with each other. Sure in more rural markets not serviced by a cable co it's more of an issue, but in suburban or urban settings, it's with the cable companies. You are still going to have that competition there.

Both Dish and DirecTV have national pricing. They don't charge different prices in different markets based on what the market supports. So if the merged company still wants to compete with the cable companies, they will have to essentially compete with every cable company in every market.

I won't argue that choice and competition is a good thing. It is. But the merged company won't be as bad as what you think.
--
Quis custodiet custodes ipsos?
Forums » Dish, DirecTV Merger SpeculationMonopoly? I think so.. »
« Not surprised....they have no choice  


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