About a year after it purchased a 30% interest in DirecTV for a bargain price, private equity firm TPG Capital is reportedly in talks with Dish Network about a possible merger of the satellite giants, a move that while familiar, nevertheless managed to boost Dish stock about 10% in the past two days.

Dish shares were up about 4% ($1.43 per share) to $35.38 on January 11 and rose another 4% to $36.83 at 11:03 a.m. on January 12. 

The New York Post reported January 11 that TPG and Dish were in advanced talks concerning DirecTV, but that the deal has hit a potential snag amid Dish founder and chairman Charlie Ergen’s supposed demands for a big chunk of voting shares and a greater say in decision making for the combined company. Together, Dish and DirecTV would become the largest pay TV distributor in the country with about 23 million subscribers, edging out Comcast by a few million customers, but coming during a time when consumers have been canceling their pricey video subscriptions for streaming services.    

Talks of a Dish-DirecTV merger have been around for decades. The two first stepped to the merger podium in 2001, only to be shot down by federal regulators. With the satellite business in steep decline — Dish has lost 5 million TV customers and DirecTV has shed 10 million since 2017 — some have speculated that the government may be more open to a merger this time around.

Whether federal regulators would approve a deal this time isn't a given. Just two years ago, the U.S. Justice Department let Dish know that it would not sign off on a merger. Maybe that stance has softened, maybe not.

Ergen has said for years that he believed a merger with DirecTV was “inevitable,” and some have claimed a combined Dish-DirecTV would have about $1 billion in cost synergies. 

Every single business in the pay TV space — distributor, content provider, streamer — wants additional scale, and having 23 million TV subscribers (15 million from DirecTV, 8 million from Dish) would deliver that, at least for the short term. Federal plans to pump about $65 billion to help extend broadband into more rural markets could also bode well for a merger. 

From a financial standpoint, the idea that a deal could be done cheaply for the parties involved also makes it more palatable. TPG bought its 30% interest in DirecTV last year for a price that valued the entire company at about $16.5 billion. AT&T paid about $66 billion for DirecTV in 2017. 

Also: AT&T and TPG: There is No Why 

Still, on the surface, putting together two companies in steep decline only seems to prolong the inevitable race to zero customers. But others say that any delay to that apocalyptic conclusion could have some real economic value and short-term benefit for consumers. 

Also: Satellite TV: Five Years, that’s All You’ve Got 

In an email message, MoffettNathanson senior analyst Craig Moffett said that while he has no idea whether talks between the two companies are actually going on, a merger deal has made sense for a long time. 

“Satellite TV will remain the only available option for rural Americans for some time — rural broadband buildouts take time — and ultimately regulators will have to take that into consideration,” Moffett said in the email. “Is one stronger satellite operator better for rural Americans than two weaker ones?”

Sanford Bernstein media analyst Peter Supino said in an email that a merger seemed plausible because “the point is to capture the efficiencies of putting the two companies together.”

Also: Getting Rid of DirecTV Won’t Be So Easy 

He added that combined EBITDA would be billions of dollars more than what the two generate today, and there are opportunities to reduce programming, network, subscriber acquisition and retention costs, as well as general and administrative expenses (G&A).

And even though Dish has shifted its focus to wireless — it is currently in the throes of building out its network — a DirecTV combination could provide a valuable cache of future mobile customers. 

More Mobile Opportunity

“The satellite TV business’s value to Dish is primarily financial, but to the extent Dish becomes more active in the future in the mobile services business, those TV subs represent potential customers to which Dish could market efficiently,” Supino said.

He added that Dish’s pitch to the Federal Communications Commission for the deal could be that the merger could curb future programming cost inflation by giving the combined company more bargaining power, and a merger would allow satellite TV to survive for a longer period. 

LightShed TMT Partners partner and media and technology analyst Rich Greenfield predicted that Dish and DirecTV would get together this year, part of his January Top 22 TMT Predictions for 2022. While talk of a combination has gone on for years, only to be quashed by regulators, he said believes this is the year for a combination to take place. 

“No, really,” Greenfield wrote. “We believe the regulatory risks today are not high given the state of the Pay TV market. Frankly, if Ergen can’t get it announced this year, it might never happen.” ■

Dish Network founder and chairman Charlie Ergen is the latest telecom executive to throw his hat into the special purpose acquisition company ring, launching CONX to raise $1 billion to buy companies in the TMT space. 

CONX, according to documents filed with the Securities and Exchange Commission, proposes to sell 100 million stock units at $10 per share, raising a total of $1 billion. Each unit consists of one share of common stock and one-fourth of a warrant, exercisable at $11.50. At the proposed deal size, CONX would have a market value of $1.25 billion.

CONX, which plans to trade on the NASDAQ under the symbol “CONXU,” also counts Dish Network treasurer and VP of investor relations Jason Kiser as its CEO, has 24 months to find a suitable target. Deutsche Bank is the sole bookrunner on the deal. 

Ergen is the current chairman of Dish and will remain in that role in addition to being chairman of CONX. Kiser, who has 30 years of experience working for Ergen, will also keep his positions at the satellite TV company.

SPACs are the latest trend in raising money, with more than 100 launched this year alone raising nearly $44 billion. Also known as “blank check” companies, investors are betting that a seasoned management team will find a private company target in a specific area that is undervalued. For the targets, SPACs offer a quicker path to raising money without the hassle of an IPO. 

In the media space, CuriosityStream is the latest company to go public through a SPAC.  Playboy agreed to be purchased by a SPAC (Mountain Crest Acquisition Corp.) in a deal that values the publisher at about $415 million. 

Ergen founded Dish Network in 1980 and has grown it into the fourth largest pay TV service provider with about 9 million customers and a market capitalization of $18.7 billion. The company is in the process of building out a nationwide wireless network and earlier this year purchased T-Mobile’s prepaid wireless business Boost, with about 9 million customers for $1.4 billion.

According to SEC documents, CONX plans to find a purchase target in the telecom, media and technology space, and seeks a  company that has “significant potential for future value creation.” That includes established companies with strong track records, but also start-ups with a path toward long-term profitability, the documents stated.          

Dish Network shook up the ranks Tuesday, naming president and chief operating officer Erik Carlson CEO of the satellite company, and adding that it will devote more attention to the emerging wireless business.

Chairman Charlie Ergen will remain in that role but he will give up CEO responsibilities, which he assumed after former CEO Joe Clayton retired in 2015. 

Dish has been accumulating wireless spectrum for years and is facing a 2020 deadline to build out at least 70% of its territory with a wireless service. The moves come just a few months after former Sling TV CEO Roger Lynch resigned to become CEO of streaming music service Pandora.  In announcing Carlson’s appointment, Dish said it will create a group structure that will more effectively support its three segments – Dish satellite TV, Sling TV and the wireless business.

“With more than 20 years’ experience at Dish, Erik brings a complete understanding of the business opportunities both Dish TV and Sling TV possess,” Ergen said in a statement. “I have every confidence that under Erik’s leadership our new organizational structure will deliver value for Dish TV and Sling TV and will aid our entry into wireless.” 

As part of the reorganization, the following executives will report to Carlson:

* Brian Neylon: will serve as executive vice president (EVP), Group President, Dish TV. Formerly EVP, Customer Acquisition and Retention. He will have accountability for all aspects of the Dish TV group’s strategy and performance and will retain oversight of the company’s Customer Acquisition and Retention departments.

* Warren Schlichting: will serve as EVP, Group President, Sling TV. Formerly EVP, Marketing, Programming and Media Sales, he will have accountability for all aspects of the Sling TV group’s strategy and performance and will retain oversight of the Dish Media Sales and Programming departments.

* John Swieringa: will succeed Carlson as COO for Dish and will oversee all operational departments supporting the company’s Dish TV, Sling TV and Wireless groups, including the company’s customer support centers, its in-home installation workforce and the company’s IT department.

* Vivek Khemka, EVP and Chief Technology Officer. Khemka’s DishTechnologies organization supports Dish TV, Sling TV, and the wireless business. The organization is responsible for technology strategy, product management, engineering, product development, supply chain management, broadcast operations and OTT delivery.

In addition to restructuring the current executive team, the company has appointed Walmart veteran and human resources executive David Scott as Chief Human Resources Officer (CHRO). Scott will serve Dish as an EVP and will join DISH’s management committee in February, reporting to Carlson.

Tim Messner, EVP and General Counsel; Steve Swain, senior vice president (SVP) and Chief Financial Officer; and Robert Toevs, VP, Corporate Communications, will report to Carlson.

In addition to Carlson, Ergen’s direct reports will include Tom Cullen, EVP, Corporate Development; Bernie Han, EVP, Strategic Planning; and Jeff Blum, SVP, Public Policy and Government Affairs.

Every time I ask my tween daughter to straighten up her room – and I mean every time – I am greeted with a puzzled look and the following question: “Why, is someone coming over?”

While that may say more about an 11-year-old’s idea of hygiene than I care to make public, that was precisely the question that came to mind when I first heard that Dish Network was consolidating some of the hardware and software assets of its sister EchoStar Communications. While Dish said in statements that the moves would give it end-to-end control of its over-the-top service, Sling TV, the timing appears odd (just as the wireless incentive auction moves through its late rounds) and it just smacks of getting the house ready for company.

Dish has been long thought to be a target of Verizon Communications, the wireless powerhouse (114 million customers) that appears to be in search of video distribution assets. Dish certainly has them – it had about 13.6 million satellite TV subscribers in the third quarter – as well as a swath of wireless spectrum that would fit in nicely with the phone company’s own wireless network.

A lot of people had thought that Verizon would eventually buy Dish – much like its rival phone company AT&T bought DirecTV in 2015 – but regulatory and timing issues aways seemed to get in the way. Now with a President that appears to be ready to wield a teeny, tiny, itty-bitty regulatory hand when it comes to mega deals, that combination seems like it would be much easier to do.

Does transferring EchoStar’s satellite, set-top and fiber backhaul operations to Dish, and off-loading the lightly-subscribed-to dishNet satellite business to EchoStar clear the decks for a potential buyer? Maybe. But it wouldn’t be too difficult to buy the whole thing and just sell off the chaff later.

Cleaning up the house is never a bad thing. It does at least remove a few steps from any deal. For example, consolidating 100% of Sling TV into Dish – about 10% was held by EchoStar – saves any potential suitor from having to do that later.

Dish stock, which fell last week when the rumor of the day was that Verizon was eyeing Charter Communications – and since disputed by many – was up 3.3% ($1.97 each) Wednesday, closing at $61.14 per share, after going as high as $61.92 per share earlier in the day (up 4.6%). EchoStar shares were up even more, climbing as high as $55.67 per share (up 9.3%) before closing at $55.06 each (up $4.13 each, or 8.1%). So, at least some investors are thinking that something may be in the works.

They are not alone.

“We believe Dish is likely one of the companies that could feel the greatest degree of urgency in trying to combine with a wireless network owner, post the conclusion of the auction,” Barclays media analyst Kannan Venkateshwar wrote in a note to clients Wednesday. “With the asset swap today, Dish appears to be concentrating its wireless assets into one entity along with technology assets that can potentially help with video offerings like DirecTV Now.  In case Dish does contemplate a transaction with a wireless operator, this mix of assets could further help the overall strategic positioning of a potential combination.”

According to reports, Wells Fargo media analyst Marci Ryvicker was quoted as having a “gut feeling” that Dish chairman and CEO Charlie could be up to something. Citigroup’s Jason Bazinet was the contrarian, saying the move was good for both companies but believing it pointed more to M&A opportunities for EchoStar than Dish.

MoffettNathanson principal and senior analyst Craig Moffett published a report on Verizon on Wednesday after a lengthy talk with the phone company’s new CFO, Matt Ellis, about several topics and believes that Verizon isn’t under any pressure to do a deal. While Ellis wouldn’t comment directly on any deals – the federal wireless auction rules prohibit conversations between bidders -- Moffett said the company makes a pretty strong case for waiting until more is known before committing to one business path.

“Despite investors’ obvious impatience, and a view among many investors that AT&T’s ‘boldness’ is preferable to Verizon’s reticence, Ellis seems to clearly appreciate that choosing one path necessarily closes others, and the risk of the path not taken is extremely high given the current level of technological and regulatory uncertainty,” Moffett wrote.

Pivotal Research Group CEO and senior media & communications analyst Jeff Wlodarczak noted that when Ergen first split Dish and EchoStar in 2008, everyone thought that was the precursor for sale of the satellite giant that never came.

Wlodarczak added that the deal doesn’t involve a huge amount of money and makes sense since EchoStar didn’t have much luck selling set-tops to companies other than Dish – the reason for the split originally.

“In the end, it appears that this was a move toward simplification for both players,” Wlodarczak said in an e-mail. 

How it plays out is left to wide speculation. Dish may be cleaning house to attract a suitor, but that doesn’t mean an appropriate one will come. And like I tell my daughter, sometimes it’s just nice to have a clean room.

RELATED:Disney Earnings Growth Falls Short of Wall Street Targets

Walt Disney Co., chairman and CEO Bob Iger backed Hulu’s plans to offer a bundle of pay TV channels through its own live streaming service, adding the online pioneer could be an attractive alternative for consumers.

Hulu unveiled plans to offer its own skinny bundle of live sports, news and events last week. Disney is a partner in Hulu along with 21st Century Fox and Comcast.

Iger said Hulu had the potential to become a formidable multichannel video programming distributor (MVPD) by offer a “best of cable” package to consumers. Hulu hasn’t said how much that package will cost or when it would be released and Iger wasn’t offering any further insight. But he said that Hulu’s moves shouldn’t upset Disney’s current distribution partners, many of whom – like Comcast’s NBC Universal – have their own programming assets.

“We don’t think there will be any negative impact whatsoever to us going into the business of distributing our channels,” Iger said.

Iger said that Disney has had talks with several other distributors about its content, including Sling TV, which introduced a multi-stream package last month that included Fox sports channels but no ESPN. Iger said that Disney had had talks with Sling about the multi-stream product but was not able to reach an agreement by the launch date. However, Iger said he met with Dish Network chairman and CEO Charlie Ergen last week (Dish owns Sling) and has had discussions about being included in the multi-stream product.  

The Disney chief had little to say about the abrupt departure of chief operating officer Tom Staggs, who many believed was Iger’s heir apparent. Staggs announced his resignation in April. His last day at Disney was May 6 but he will remain as an advisor to Iger through the end of fiscal 2016.

Iger said he was sorry that Staggs decided to leave, calling him a “colleague and friend,” but said the Disney board had ample time to find a new successor. Iger’s current employment deal with Disney has another two years left and the chairman and CEO said he has no current plans to extend it. That could leave the door open to him staying on past that date, but at least for now, Iger said he has no plans to stay beyond his agreed upon term.

Dish Network chairman and CEO Charlie Ergen said the extension of its carriage talks with  Viacom is “a positive,” but stressed that programming values have fallen as ratings have decreased across the board.

Viacom executive chairman and CEO Philippe Dauman let the cat out of the bag in his company’s Feb. 9 earnings conference call that the programmer had a brief extension in its negotiations with Dish. Most analysts saw that as a sign that at least the two were beginning to make progress in their talks.

On an earnings conference call with reporters on Thursday, Ergen said the extension was “a positive because we’re not down.”

Ergen said that the problem when networks go dark and return to carriage a month or so later, the distributor has already lost the customers who value that content. But he added that, especially with programmers that Dish has had a long relationship with, he doesn't spend a lot of time looking for loopholes.

“I don’t want to look at how we’re not going to do a deal; I want to look at how we are going to do a deal. The benefit of the doubt goes to our programming partner because they helped us build our business,” Ergen said. “Viacom is one of those long term partners for us; they helped us build our business.  It would take a lot for us not to move forward.”

At the same time, Ergen noted that programmers have to face reality when negotiating carriage deals.

“People have to be realistic that the viewership of their channel relates to the value of their channel,” Ergen said. “The availability of their content in other places to our consumers, they shouldn’t be forced to pay for it twice.”

Dish Network made a series of management changes Friday, including naming company veteran Erik Carlson president and chief operating officer, in what it said is an effort to fulfill its strategic goals and align the business to better reflect the changing pay TV environment.

Carlson, who was previously EVP of Operations, is a 20-year veteran of the company. In his new role he will supervise all Dish revenue-generating, operating and administrative units, including customer acquisition and retention, finance and accounting, human resources, marketing, media sales, programming, operations and Dish’s newly formed technology office.

In addition, current Dish COO and EVP Bernie Han was named EVP of Strategic Planning and will continue reporting to chairman and CEO Charlie Ergen, who is relinquishing the role of president.

“Bernie’s unparalleled depth as an operational and financial leader will be indispensable as we advance our work on the strategic transformation of DISH, including our entry into the wireless industry,” Ergen said in a statement.

Like Han, Carlson will report to Ergen, as will EVP of corporate development Tom Cullen, EVP and general counsel Stanton Dodge and Sling TV CEO Roger Lynch.

“Erik joined us just before our first satellite launch and has consistently demonstrated remarkable leadership across his many assignments throughout our business,” said Ergen. “He has a clear vision for how DISH will deliver the best customer experience and claim share in our category.”

 The following individuals will report to Carlson:

·         Vivek Khemka: Khemka has been promoted to EVP and chief technology officer and formerly served as Dish’s SVP of product management.

·         Mike McClaskey: EVP and chief human resources officer

·         Brian Neylon: Neylon has been promoted to EVP of customer acquisition and retention and formerly served as Dish’s SVP of sales.

·         Warren Schlichting: Schlichting has been promoted to EVP of marketing, programming, and media sales and formerly served Dish as SVP of programming and media sales.

·         Steve Swain: SVP and CFO

·         John Swieringa: Swieringa has been promoted and will assume Carlson’s role as EVP of operations. Swieringa formerly served as Dish’s SVP and CIO.

Rob Dravenstott, who most recently served as Dish VP of IT application development, has been promoted to SVP and CIO and will report to Swieringa.

Additionally, Dish has appointed SVP and corporate controller Paul Orban, who reports to Swain, as chief accounting officer.

Charter Communications CEO Tom Rutledge said his company is prepared to take over the operations of Time Warner Cable and  Bright House Networks, adding that it continues to wind through the regulatory approval process with hopes for a closing date early next year.

"We’re ready,"Rutledge said at the UBS Media & Communications conference in New York. "We've talked to Time Warer Cable and Bright House employees, we've set up a field stucture, a new regional structure and told people how that is going to work. We're ready to close at any time whe we're given permission and be ready to start operating the business."

Charter agreed to purchase TWC and Bright House in May. After the deals are consummated, Charter will grow from a 4-million subscriber cable operator into a 17-million subscriber powerhouse with operations major markets like New York and Los Angeles.

Last week Dish chairman Charlie Ergen came out against the deals in a filing with the Federal Communications Commission, claiming the combination would stifle online video development. 

Rutledge didn’t address Ergen directly but said at the conference that the Charter deals don’t have the same issues as Comcast-TWC did earlier in the year. Comcast withdrew its purchase of TWC in April after it determined the FCC would not approve the deal, mainly because of its broadband dominance.

Since the Charter deal was announced, TWC has had some of its best performance in years. In the third quarter, TWC shed just 7,000 video customers, its lowest Q3 loss in nine years. 

At the UBS conference, Rutledge acknowledged the TWC gains, but said he would probably do it differently.

“They’ve done a nice job in continuing long-term value,” Rutledge said. “Not exactly the way we would do it [though].”

Rutledge said the main difference is that Charter believes in placing two-way interactive boxes in every home, and TWC has been putting one-way digital boxes in some homes as it moves to take it network all- digital.

“We believe the future of TV is 2-way interactive,” Rutledge said.

 The Charter chief also addressed concerns that federal regulators may have problems with Liberty Media chairman John Malone owning a substantial stake in Charter. There has been a question as to if Malone would favor Charter with deals for content providers in which Liberty or Malone owns stakes.

Rutledge said favoring Charter would make little sense for Liberty. And he added that his 27% interest in Charter will be diluted to about 18% in the company once the deals are closed.

“He [Malone] is not in a control position,” Rutledge said. “There is no issue there.”  

Dish Network said Friday that chief financial officer Robert Olson will retire, effective Oct. 15, and will be replaced by current senior vice president of programming, Steve Swain. Swain will report to CEO Joseph Clayton.

“Robert is as capable and strategic a CFO as I have ever encountered in my 42 years in business,” Clayton said in a statement. “I congratulate Robert on the excellent service he has given DISH over the past five years and for the capable team he has built.”

Swain joined Dish in 2011 as vice president of corporate financial planning and analysis and was named SVP of programming in late April of this year when Dish announced that EVP of programming Dave Shull would take a six-month leave of absence to care for a family member beginning May 31. Prior to Dish, Swain spent more than 15 years in the telecom sector, most recently at CenturyLink, formerly Qwest Communications. There he served in multiple leadership roles across Finance, including corporate financial planning and analysis, treasury, and investor relations, as well as in Network Engineering. He earned his bachelor’s degree in chemical engineering from the University of Wisconsin and his MBA from the University of Chicago.

“Steve has been a star since the day he arrived,” said Clayton. “He has a command of the entire finance organization and, having had the chance to lead our programming group, he is equipped to offer a sound strategic perspective to our entire business.”

Olson joined Dish in 2009 and previously served as CFO at Trane Commercial Systems from 2006 to 2008, Chief Financial Officer at AT&T's Business Services division from 2004 to 2006 and as Chief Financial Officer of its Commercial Services division for a year prior. In addition, Olson spent more than 20 years in leadership roles in finance, marketing, operations and planning, first with ExxonMobil and later with American Airlines.

The battle between Harbinger Capital Partners chief Philip Falcone and Dish Network chairman Charlie Ergen continues to reach new heights, after Falcone sued Ergen, Dish and a handful of Ergen’s personal investment vehicles in a Colorado Court for $1.5 billion, claiming they tried to wrest control of its bankrupt LightSquared wireless high-speed data network by disrupting the reorganization process.

LightSquared had lofty ambitions when it first came on the scene a few years ago. Falcone, who had made billions by betting against the boom in sub-prime mortgages in the earlier part of the 2000s, had pumped billions into the high-speed data service, which had planned to build a hybrid broadband network using satellites and terrestrial lines to reach as many as 260 million people by the end of 2016. But mounting costs and changes in technology threw a wrench in those plans, and LightSquared filed for bankruptcy protection in 2012.

It was after that bankruptcy filing that Harbinger claims Ergen – who had snapped up wireless spectrum form other bankrupt companies at bargain process – tried to do the same with LightSquared.

This isn’t the first time that Harbinger has sued Dish over LightSquared. Last August it filed suit in U.S. District Court for the Southern District of New York, claiming Dish “engaged in a  fraudulent scheme” to take LightSquared away. That case, where Harbinger was seeking $4 billion – was dismissed last year.

Now Harbinger is suing Ergen and Dish under the Racketeering Influenced and Corrupt Organizations (RICO) Act, a tactic usually saved for mobsters. According to the suit, filed in U.S. District Court for the District of Colorado, Harbinger claims that Ergen and Dish used “wire, mail and bankruptcy fraud, abuse of process, tortuous interference with contract and obstruction of justice,” to obtain a majority of LightSquared’s senior secured debt, make low-ball bids for its assets to gain the support of secured creditors who would get paid, and claiming that by rejecting those proposals, Harbinger breached its fiduciary duty.

Those tactics, LightSquared claims, forced the court to install an independent committee to run all aspects of the company.

Dish said it was currently evaluating the suit and had no comment at this time.

In late June, Harbinger announced a $3 billion restructuring plan that would give 74% of the company to JP Morgan Chase, Cerberus Capital Management and Fortress Investment Group, with Harbinger controlling about 12.5%. As part of that plan, Ergen would be paid $$70 million for his holdings and would get a $492 million secured note.

Charlie Ergen may play up the homespun side of his nature at times – make no mistake, this guy is a brilliant and gutsy entrepreneur – but on a recent earnings conference call with reporters, the Dish Network chairman absolutely nailed it when commenting about the merger mania that has swept through the media industry in the last year. Simply put, Ergen said not to believe everything that you hear.

I don’t think Ergen was necessarily criticizing the media as much as he was emphasizing that deals are inherently fluid – big companies talk to other big companies all the time. Sometimes an actual deal results but oftentimes it is the equivalent of old friends bumping into each other at the airport: Sure, there’s a buzz from the initial encounter, but after awhile those dinner plans you made don’t seem worth the trouble and that buzz wears off.

And even the deals that do get done usually don’t take the shape originally expected – the most recent example: Comcast and Time Warner Cable.

In Ergen’s words, “the movie always has a twist,” and he admitted even those players thick in the acquisition game can’t always predict the outcome. “Even the way I think things are going to happen, isn't going to be the way it's going to happen,” he said.

Ergen likened the recent merger frenzy to “drunken fools” throwing money on a poker table and advocated taking a wait and see stance. I’d use another analogy – bankers throwing heaps of spaghetti against a wall in the hopes that the biggest strands stick. Either way, his idea to wait to see how those chips fall may be the most prudent strategy of all.

To bring home that point, Ergen tapped a tried and true poker metaphor.

“You want to get as good cards as you can, you want to keep getting cards and you want to wait and see until it's all out there,” Ergen said. “And then you make your move. I don't know how to explain strategy other than that.”

Neither do I.

Dish Network chairman Charlie Ergen, reaching back into his ample sack of poker metaphors, said that he would prefer to sit back and watch the current merger frenzy in the media business play out, noting that as a former professional card player he “learned to trust my cards.”

On a conference call with reporters after announcing strong Q1 earnings, Ergen said he didn’t have the firepower to outbid Sprint for T-Mobile or AT&T for DirecTV, citing two of the top rumored deals of the week, and would likely stick to the sidelines for the time being.

“When I used to play poker and everybody was throwing chips and betting crazy on the table, and I had really good cards, I always felt it was better to sit back and let them go at it,” Ergen said. “Every time they went at it, I’d learn something, and as I sat back they didn’t learn what I had.  And I learned to trust my cards. I wasn’t a very good poker player but when a bunch of drunken fools were throwing money around, occasionally I was able to pick up a pot at the end of the day.

“It’s crazy how eerily similar it seems to me today, with this crazy stuff in the press that everyone is going to go on wild swings in the market,” he continued. “My recommendation to my board will be probably to let’s see what all happens.”

Merger mania has swept the media industry over the past year, with several potential mergers speculated in the press. Over the past two weeks, Dish rival DirecTV has been said to entertain overtures from AT&T in a possible deal worth $40 billion. On a conference call with analysts to discuss first quarter results, Ergen said an AT&T/DirecTV merger could make economic sense, but stopped short of saying the deal would be a good one for AT&T.

“There certainly is economic rationale for an acquisition of DirecTV by AT&T, because I think it would be accretive even at a very high price, even materially higher than DTV is selling for today,” Ergen said.

Ergen said if reports are true that DirecTV has hired advisers to evaluate deals, it would behoove other companies to take a close look at the satellite giant.

“It probably makes a little less sense strategically,” Ergen said of an AT&T/DirecTV union. “They don’t buy you what you really need to probably compete with where the industry is going.”

That direction is an increasingly mobile one, Ergen believes and he pointed out that Dish has very attractive wireless assets that may get even more attractive once federal auctions for the AWS3 spectrum start up in the fall.

Ergen said that most analysts and investors miss that Dish has about the same amount of downlink spectrum as telecom giant Verizon, has two blocks of 20 Megahertz spectrum – which he called the LTE sweet spot – and that it has the same frequency nationwide..

“You’re going to get a pretty good market comparable in that auction for what our spectrum is worth,” Ergen said.