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

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

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.

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.

Latest Ratings for TMUS

DateFirmActionFromTo
Feb 2020Raymond JamesDowngradesStrong BuyOutperform
Feb 2020UBSMaintainsBuy
Feb 2020Argus ResearchMaintainsBuy

View More Analyst Ratings for TMUS
View the Latest Analyst Ratings

Posted-In: Marcelo Claure Mike SievertAnalyst Color M&A Analyst Ratings Tech Media Trading Ideas Best of Benzinga

 

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