INVESTORS DISS DISH AS AT&T PICKS RIVAL

Investors went running for the door with struggling satellite TV service Dish Network Corp. yesterday, following word late Friday that distribution partner AT&T was dumping them for rival DirecTV.

Shares in the stock plunged 19 percent, or $4.58, to $19.97 in the first day of trading following the news.

Analysts are now expecting sharp declines for Dish subscriber growth, and unlikely prospects of the company finding a merger partner with top candidate AT&T out of the picture.

Sanford Bernstein analyst Craig Moffett called the move “a clear negative for Dish Network, and a major win for DirecTV,” adding that “AT&T has expressed its clear preference for the (stronger) DirecTV brand if they are ever interested in buying rather than partnering.”

Likewise, Liberty Media Chairman John Malone, whose firm owns a 50 percent stake in DirecTV, poured cold water on the prospects of a tie-up between the two satellite competitors.

Moffett said yesterday he now expects the company to post a net loss of 400,000 subscribers in fiscal 2009.