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Exclusive: DISH Network And Amazon Could Expand Partnership, Explore Possible Merger

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Exclusive: DISH Network And Amazon Could Expand Partnership, Explore Possible Merger
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Amazon.com, Inc. (NASDAQ: AMZN) and DISH Network Corp (NASDAQ: DISH) could potentially be taking their ever-deepening relationship one step further.

Days after the pair integrated Alexa into DISH boxes, a person familiar with the situation told Benzinga the two companies are considering extending their partnership or potentially merging sometime in the next few months.

Such a partnership would throw water on analyst theories of a DISH buyout by telecommunications firms.

So What’s New?

Amazon intends to support its delivery drones with DISH's 5G spectrum, the person said.

Additionally, Benzinga has learned the companies are exploring integrating Amazon Prime Video for DISH-facilitated streaming.

See Also: Why Alexa May Have Played Matchmaker In Potential Amazon-DISH Network Marriage

Speculation

DISH has been surrounded by merger speculation ever since Straight Path Communications Inc (NYSE: STRP) announced a deal to be acquired by AT&T Inc (NYSE: T). AT&T was later outbid for Straight Path by Verizon Communications Inc (NYSE: VZ).

The Straight Path deal put Wall Street on notice that companies with significant spectrum were becoming takeout targets in a consolidating telecom space. But the notion of a deal with Amazon was raised by Citi analyst Michael Rollins back in May, who said the relationship would be mutually beneficial for both companies.

DISH CEO Charles Ergen, on the company's most recent earnings call, expressed a considerable desire to find a partner that envisioned a wireless world bigger than one in which "you can send a text and maybe...stream a little bit of video," - in other words, a partner willing to disrupt the space.

DISH and Amazon both declined to comment.

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