Echostar revives Murdoch's US satellite ambitions

Rupert Murdoch's options for a way into the US satellite television market appeared to have broadened yesterday on reports that Echostar has approached the media mogul about a possible deal.

According to a report in the Wall Street Journal, Echostar, the second largest satellite broadcaster in the US, has recently held discussions with both Mr Murdoch's News Corporation and John Malone's Liberty Media.

Echostar has been forced to rethink its future after US regulators blocked its attempted $18bn (£11bn) takeover of Hughes Electronics, which owns the number one player in the satellite market, DirecTV.

Mr Murdoch made his US ambitions plain when he competed against Echostar in the auction for Hughes, narrowly losing out at the last minute.

The largest shareholder in Hughes, General Motors, is assessing options for the busi ness. There was a suggestion yesterday that Mr Murdoch could be using Echostar to force GM into action.

An Echostar spokesman said: "Obviously our board of directors would be required to consider any firm proposal that would benefit our shareholders." A News Corp spokesman declined to comment.

Echostar had hoped that by merging the two biggest satellite companies it could present a viable alternative to the powerful cable industry in the US.

But Washington regulators ruled against the merger. The chief concern was the elimination of competition in rural areas where there is no cable.