Does the News Corp/Liberty Asset Swap Deal Put EchoStar (DISH) In Play?

RealMoney.com options columnist Steven Smith suggests that News Corp's (NYSE: NWS) asset swap deal with Liberty Capital to send its DirectTV (NYSE: DTV) stake to Liberty return for Liberty's stake in News Corp could set the stage for a takeover of DirectTV rival EchoStar Communications (Nasdaq: DISH).

Smith said the deal will clean up the ownership structure of both NWS and DTV, leaving either to buy EchoStar. Smtih said Liberty could also buy DISH, to complement its European satellite business BSkyB.

In the past, AT&T (NYSE: T) was also mentioned as a possible buyer for DISH, which has long been a rumored target.

Merrill Lynch's Cohen Comments on Media Consolidation

According to The New York Times Deal Book blog, citing a Reuters article, Merrill Lynch analyst Jessica Reif Cohen sees further consolidation in the media sector. Link

Cohen said Comcast (Nasdaq: CMCSA) and Time Warner Cable (NYSE: TWX) will continue to dominate in the cable market.

Cohen said Verizon (NYSE: VZ) or AT&T (NYSE: T) could buy satellite-TV providers EchoStar (Nasdaq: DISH) or DirectTV (NYSE: DTV), or the two could merge.

Cohen said DreamWorks Animation (NYSE: DWA) is a possible takeover target.

Cohen sees Viacom (NYSE: VIA) and CBS (NYSE: CBS), which split in January, as possible acquirers. She doesn't think either will be taken private as has been rumored.

Could AT&T Throw in the Towel on BellSouth?

According to Barron's Tech Trader Daily blog, today's action in AT&T (NYSE: T) and BellSouth (NYSE: BLS) could be related to speculation AT&T may drop the planned acquisition of BellSouth rather than meet regulatory concessions. Link