Malone Urges Ergen to Merge Dish With DirecTV

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July 11 (Bloomberg) -- Liberty Media Chairman John Malone urged fellow billionaire Charlie Ergen to combine Dish Network with DirecTV to get the advantages of bigger bulk in the pay-TV business. Jon Erlichman reports from the Sun Valley Conference on Bloomberg Television's "Market Makers." (Source: Bloomberg)

Having had all this time and the trial balloon, it is clear from the release this is not been widely discussed at the highest levels of the company, so it would not surprise me to see more departures before all of it shakes out before the end of the year.

Paul kedrosky, always good to talk to you.

Bloomberg contributing u editor.

Saying2 -- u2, erik did biggie smalls.

John malone is hungry for more investors.

He will like to see more players from the cable industry consolidate.

Our senior west coast jon erlichman spoke with him at a conference in sun valley, idaho.

I want to know if weather malone himself said whether he would be doing any of the consolidating, as many expect.

Exactly.

He has been leading the headlines.

A lot of people have seen the bloomberg news reporting on his urging of and time warner cable to get together.

Through his stakes in a lot of the cable companies, he was able to use his muscle a little bit.

His general theory has been that the industry could use some consolidation.

The biggest layer comcast, only has about 20% of the overall market.

Some of the small players getting together gives them that much gail.

It was interesting to get the perspective on the satellite players -- directv and dish.

He was speaking to reporters, including myself earlier this morning.

Pulled out my iphone to get him on camera.

Here is what he said about that possibility.

I also think it would be good, by the way, if they could combine with -- or dish.

Just because scale economics in the media business drives down costs and makes it possible for larger investment.

To me, in order to include the services to the consumer, you need larger -- not necessarily monopoly players but larger players.

We figured we'd show you the reaction of both of those companies to the comments.

He is a heavyweight, and when a heavyweight speaks, there is often a stock market reaction.

You have been breaking news in sun valley about what will happen to hulu i gather you talk to malone about lulu because he is an investor of the company that my soon-to-be owners of hulu.

You think about directv and time warner cable, both of which have different strategies.

Directv would like to buy all of hulu and time warner cable would like to buy a portion of hulu.

He seems to be more in favor with that idea, the idea that a group of cable companies owning an asset like a hulu maybe goes back to the idea of having scale.

However, we also spoke to michael eisner -- michael eisen, the former ceo of disney yesterday and he said he kicked the tires on hulu but was not sold because he was concerned about the long-term licensing rights.

Here is a snippet.

The sellers -- disney and the other two owners, nbc and so forth -- fox -- selling it and taking away basically the ability of their content from giving something for a couple of years.

So anybody buying it is buying it with a dream that they could be netflix.

There you go.

I will say there are some hulu headaches, because there are a lot of media executives getting questions from the media about what is happening with hulu.

One of the key stories that sun valley.

You are turning this into a meta event.

All about content.

And you are creating content about content.

Jon erlichman.

Love the entity on his iphone.

Breaking news on the hurts and dollar thrifty deal.

-- hetzrtz and dollar thrifty deal.

The ftc has approved it.

The regulator will approve the acquisition.

This has been in the works for months.

Let's add that the order from the ftc is going to clarify the details of the possible resale -- attorneys they need to make.

Potentially the advantage plan and -- brand and 29 others.

We will break it down when we come back.

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The numbers just have not added up.

Wal-mart threatening to go home.

In this case, it is no gain.

"market makers." streaming on your phone, tablet, and bloomberg.com.

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This text has been automatically generated. It may not be 100% accurate.

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