Market Overview

Macquarie Believes DISH Could Make Compelling Counterbid For DirecTV

Related DISH
Looks Like You Won't Need That Bulky Cable Box Anymore
U.S. Senators Say Time Warner Cable Overbilled Customers $640,000
What's At Stake For Dish, Comcast, AT&T, Verizon In Long TV Auction? (Investor's Business Daily)

Macquarie believes Dish Network (NASDAQ: DISH) could make a counteroffer that can offset the regulatory risk of a DIRECTV (NASDAQ: DTV) and Dish merger.

Macquarie analyst Amy Yong writes, "Dish can bid US$120/sh+ or US$30/sh+ cash and offer a financially more attractive deal to shareholders."

Yong notes Dish would likely need to pay a three percent break-up fee.

Yong notes that Dish Chairman Charlie Ergen may have already found more attractive ways to create value, other than partnering with AT&T. Yong also believes that the M&A regulatory concessions could work in Dish's favor by securing spectrum at below-market rates, or could become the fourth player in the wireless industry in the event of consolidation, such as a deal betweenSoftBank and T-Mobile US.

Dish shares were trading down 1.42 from Friday's close of 59.95 at 58.53 in Monday morning's session.

Posted-In: counteroffer Softbank T-MobileAnalyst Color News Rumors Offerings M&A


Related Articles (DISH + DTV)

View Comments and Join the Discussion!