Why T-Mobile Is The Likeliest Target For A Takeout Following Time Warner-AT&T Deal


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


T-Mobile US Inc (NASDAQ: TMUS) could be the next acquisition target for media companies following AT&T Inc. (NYSE: T)'s deal to buy Time Warner Inc (NYSE: TWX) for $85.4 billion, according to a Reuters report.

"The takeout target over the next twelve months has got to be T-Mobile," Reuters said, citing New Street Research analyst Spencer Kurn.

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According to the report, potential buyers include Comcast Corporation (NASDAQ: CMCSA), DISH Network Corp (NASDAQ: DISH) and Mexican telecom company America Movil SAB de CV (ADR) (NYSE: AMX).

Media firms seek more distribution capabilities for their quality content, which in turn helps carriers stay competitive in a saturated yet competitive wireless market.

T-Mobile reported strong third-quarter numbers and took subscribers from rivals including Verizon Communications Inc. (NYSE: VZ) and AT&T, as it added 851,000 postpaid subscribers in the quarter.

“Its strong balance sheet and fast-growing wireless business makes it an attractive target for a pay-TV or media company,” Reuters reported, citing analysts.

"Content of all kind is rapidly landing on the internet and the internet itself is rapidly transforming toward mobile," T-Mobile Chief Operating Officer Mike Sievert told Reuters.

T-Mobile is "very interested" in exploring strategic opportunities, Reuters added.

Meanwhile, Reuters also said Sprint Corp (NYSE: S) is another takeout candidate.

"Our strategic value to many has significantly grown," Chief Executive Marcelo Claure said on an earnings call on Tuesday.


27% profit every 20 days?

This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.


Posted In: Analyst ColorM&AAnalyst RatingsTechMediaTrading IdeasMarcelo ClaureMike SievertNew Street ResearchReutersSpencer Kurn