Jack Grubman Calls Out Charles Ergen During First Interview in Ten Years
Jack Grubman, the former Citigroup (NYSE: C) analyst that was infamously banned from securities, made his first television appearance Friday since 2003, when he was fined $15 million by the Securities and Exchange Commission over a conflict of interest in his advisement.
Now, he's the founder and CEO of consultancy firm Magee Group. He appeared on CNBC's Squawk Box to discuss a variety of things, including his past, and his recent op-ed that's got so many people buzzed.
Grubman argued that there's a change in form, but not substance, in the analysis behind the market. Grubman said that even though bankers and analysts aren't in the room at the same time during meetings, they're still going to pitch for the IPO just like 15 years ago.
He also made statements that reflected the focus of his recent New York Times (NYSE: NYT) DealBook op-ed piece. Grubman went on to state that Charles Ergen, founder of Dish Network (NASDAQ: DISH), didn't really want Sprint Nextel (NYSE: S) or Clearwire (NASDAQ: CLWR).
He said that Ergen is aware his business is in decline, saying that five million homes in the United States are already zero television. He guaranteed the watching television content will be significantly diversified in ten years.
"He has been snarfing up spectrum. He got a waiver from the FCC [Federal Communications Commission] to offer terrestrial cellular service. So he has the spectrum. That's the good news. The bad news is he has no network, " said Grubman.
He argued that in his heart of hearts he doesn't really own either of the companies, but rather agitate a network access deal from Sprint Nextel.
He said that Ergen is good at agitating.
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