Market Overview

Here's What Gabelli & Company Said In January About A Potential T-Mobile/Dish Deal

Share:
Related
AT&T, Verizon The Likely Winners In The Event T-Mobile-Sprint Deal Rumors Ever Come To Fruition
Mike Khouw Sees Unusual Options Activity In Sprint
Sprint Short Interest A Mystery As T-Mobile Merger Talk Heats Up (Investor's Business Daily)

Shares of T-Mobile US Inc (NYSE: TMUS) surged to fresh 52-week highs of $40.77 on Thursday, while shares of DISH Network Corp (NASDAQ: DISH) were higher by more than 6 percent after The Wall Street Journal reported the two companies are in merger talks.

Here is what Sergey Dluzhevskiy of Gabelli & Company said back in January when consolidation in the space seemed imminent.

In a note published January 5, Dluzhevskiy speculated that Sprint Corp (NYSE: S) has the most to gain from combining with T-Mobile and would be willing to pay the most given an expected $3.0 to $3.5 billion annual operating expenditure savings within a few years after merging. However, the analyst noted that Sprint acquiring T-Mobile is "clearly unlikely" under the current administration.

Dluzhevskiy stated that Dish Network could be in a "better position" to structure a bid for T-Mobile that Deutsche Telekom (66 percent owner of T-Mobile) might find acceptable and the company would be free to pursue a bid after the AWS-3 spectrum ended in late January.

"A combination of a sizeable wireless business (with strong operating momentum) with a vast spectrum portfolio owned by Dish Network could further turbo-charge T-Mobile growth and enhance the value of the combined entity," Dluzhevskiy wrote. "The combined company might also eventually become an acquisition target or a major partner for Sprint."

Dluzhevskiy finally noted that in the event that T-Mobile remains a standalone operator within 12 to 24 months, a bid by Comcast Corporation (NASDAQ: CMCSK) would not be a "surprise" as an acquisition could play both "offensive" and "defensive" roles in its competition with large telecom operates and ensure it is not in a competitive disadvantage over the long-term.

Latest Ratings for TMUS

DateFirmActionFromTo
Jul 2017Deutsche BankMaintainsHold
Jun 2017Drexel HamiltonInitiates Coverage OnBuy
Apr 2017SunTrust Robinson HumphreyInitiates Coverage OnBuy

View More Analyst Ratings for TMUS
View the Latest Analyst Ratings

Posted-In: AWS Spectrum Deutsche Telekom Dish Network Gabelli & Company Sergey Dluzhevskiy T-MobileAnalyst Color Analyst Ratings

 

Related Articles (CMCSK + DISH)

View Comments and Join the Discussion!
Loading...
Loading...