Market Overview

T-Mobile, Dish Network In Merger Talks

T-Mobile, Dish Network In Merger Talks
2 Factors That Create Opportunity For T-Mobile Over The Longer Term
FCC Fines T-Mobile $48 Million Over Restrictions Placed On 'Unlimited' Data Plans
Verizon Stock Falls, Q3 Revenue And Wireless Subscribers Disappoint (Investor's Business Daily)
Related DISH
Benzinga's M&A Chatter for Thursday, October 20, 2016
6 Stocks Which Rallied Four Days, Then Sold Off On Friday
Tesla's New Product, Google's Web TV Plans, Microsoft's Earnings - Eye On Tech (Seeking Alpha)

Yet another major telecom merger deal could be in the works, according to the Wall Street Journal.

Dish Network Corp (NASDAQ: DISH) and T-Mobile US Inc (NYSE: TMUS) have reportedly been in talks to join forces. The deal would combine the second-largest U.S. TV operator and the fourth-largest wireless carrier.

Shares of Dish were up more than 3 percent in the pre-market session, while T-Mobile was up more than 7 percent.

The Details

Very few details about the potential deal are known at this time, including any information on purchase price or deal structure. WSJ is reporting, however, that Dish CEO Charlie Ergen would potentially serve as the combined company’s chairman.

Representatives at Dish, T-Mobile and Deutsche Telekom, owner of about 66 percent of T-Mobile, declined to comment on the merger.

Related Link: The Real Reason Apple's iPhone Left Virgin Mobile?

Hungry For Spectrum

T-Mobile’s lack of low-band spectrum has reportedly led the carrier to seek to buy spectrum from smaller rivals. Dish was an unexpected winner of mobile airwaves during the record-setting U.S. auction in January, but has not specifically indicated its intentions for the new spectrum. Dish has also recently expanded into the streaming TV space.

M&A Flurry

The telecom space is currently in the midst of a wave of consolidation, and the potential T-Mobile/Dish merger is just the latest in a string of deals and proposed deals. AT&T Inc. (NYSE: T) is reportedly close to closing its $49 billion buyout of DirecTV (NASDAQ: DTV). Charter Communications, Inc. (NASDAQ: CHTR) also recently made a $56 billion bid for Time Warner Cable Inc (NYSE: TWC).

Some potential major deals in the space recently have fallen apart under regulatory scrutiny. A proposed 2014 merger between T-Mobile and Sprint Corp (NYSE: S) was abandoned after regulatory push-back.

Posted-In: Charlie ErgenNews Wall Street Journal Rumors M&A Top Stories Media Best of Benzinga


Related Articles (DISH + TMUS)

View Comments and Join the Discussion!