Ergen says Dish Network cannot afford to bid for DirecTV

Thu May 8, 2014 2:30pm EDT

Dish Network Chairman Charlie Ergen attends the Google's annual developers conference in San Francisco, California May 20, 2010. REUTERS/Robert Galbraith

Dish Network Chairman Charlie Ergen attends the Google's annual developers conference in San Francisco, California May 20, 2010.

Credit: Reuters/Robert Galbraith

(Reuters) - Dish Network Corp (DISH.O) Chairman Charlie Ergen said the satellite TV company would not make a move for competitor DirecTV (DTV.O) because the price would be too high, even though a combination of the two companies would have high synergies.

"DirecTV would be too frothy for us, for our board to look at, at those kind of prices," Ergen said on a conference call on Thursday after the company reported first quarter results.

Ergen was referring to media reports saying AT&T Inc (T.N) and DirecTV were weighing a tie-up.

He also said Dish was not in a position to outbid Sprint Corp (S.N) should it make a move for smaller rival T-Mobile US Inc (TMUS.N) but if Sprint did not proceed, T-Mobile US Inc would be of strategic interest to Dish.

(This version corrects headline and first line in story to say Ergen is chairman, not CEO of Dish Network)

(Reporting By Liana B. Baker; Editing by David Gregorio)