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Direct broadcast satellite service <A HREF="http://www.echostar.com">EchoStar</A> is serious about acquiring <A HREF="http://www.directv.com">DirecTV</A>, its larger competitor, by acquiring Hughes Electronics, a subsidiary of General Motors. Hughes operates DirecTV. On August 5, EchoStar announced that it had proposed an all-stock transaction valuing Hughes at $32 billion based on EchoStar's stock closing price on August 3.

<A HREF="http://www.echostar.com">EchoStar</A>'s fortunes are looking up. The Littleton, CO&ndash;based direct broadcast satellite (DBS) service has yet to win regulatory approval in its bid to acquire rival DirecTV, but it is enjoying a surge in revenue, the result of massive growth in its subscriber base.

Last year, during <A HREF="http://www.echostar.com">EchoStar Communications</A>&rsquo; prolonged and unsuccessful campaign to acquire Hughes Electronics&rsquo; DirecTV, EchoStar CEO Charlie Ergen promised that if the merger weren&rsquo;t approved, subscription fees would almost certainly increase.

The animosity is heating up between the <A HREF="http://www.disney.com">Walt Disney Company</A> and direct satellite broadcaster <A HREF="http://www.echostar.com">EchoStar</A>. Following EchoStar's removal of Disney's ESPN Classic from its offerings, the DBSer is now trying to drop the ABC Family channel, another Disney operation.

Versatile, low-cost set-top boxes are coming soon, thanks to a joint venture announced February 23 by digital television software developer <A HREF="http://www.opentv.com/">OpenTV</A> and direct-broadcast satellite service <A HREF="http://www.echostar.com/">EchoStar Communications Corporation</A>. The device will incorporate both interactive features and a hard-disk recorder, and may be rolled out by EchoStar's DISH Network by the end of the year.

Financial life is looking good for <A HREF="http://www.echostar.com">EchoStar Communications Corporation</A>. The Littleton, CO-based direct broadcast satellite operator reported second-quarter profits of $45.8 million, with revenue up 21%, to $1.17 billion. EchoStar's subscribership increased by 295,000 during the quarter, and the company is predicting that it could add more than 1.2 million new subscribers to its DISH network in 2002, with a total approaching eight million by year's end. EchoStar reported the results August 15.

EchoStar Communications Corporation and Hughes Electronics Corporation, parent company of DirecTV, are still hopeful of a merger, despite regulatory opposition. The two would-be partners are working on concessions that could win over officials at the Federal Communications Commission and the US Justice Department.