Dish To Discuss Takeover Deal with T-Mobile

by Istvan Fekete on September 9, 2014

T-Mobile’s fresh approach to customers has ignited the interest of multiple parties, as we have seen see lately. First there was Sprint, who opened discussions with the carrier about a takeover, but the negotiation talks weren’t successful. Next in line is Dish: company CEO Charlie Ergen recently contacted Deutsche Telecom AG to inform them he is interested in a future acquisition of its T-Mobile US unit, according to people familiar with the matter speaking to Bloomberg.

Ergen, however, hasn’t yet made a formal offer, the sources say. He allegedly told Deutsche Telecom that he’d be open to the idea in the coming months.

Deutsche Telecom previously received an offer earlier from the French Iliad SA, but considered Iliad’s $15 billion bid to control T-Mobile too low. Actually, T-Mobile has grown 24% in market valuation within the past year, as it leads the wireless industry on lowering prices and lures more customers from other carriers. T-Mobile US chief John Legere predicted that the carrier would overtake Sprint in terms of total customers by the end of the year.

Dish is currently the second-largest US satellite-TV provider, and Ergen hinted earlier this year that it would open discussions with Deutsche Telekom if discussions with Sprint fell apart. Now Dish is back, as promised, and has said it may be interested in a deal after the November auction for wireless auction, although it hasn’t formally hired a bank to advise in a takeover.

During the August 6 earnings call, Ergen said the company’s focus was on the AWS-3 spectrum auction scheduled for November, as the results will “tell us kind of where we stand on a baseline value as a company.”

Dish may be interested in acquiring more spectrum licences, but the auction may also help set a higher market value for the spectrum it already owns – an estimated $26 billion, according to Bloomberg.

Did you like this post? TheTelecomBlog.com publishes daily news, editorial, thoughts, and controversial opinion – you can subscribe by: RSS (click here), or email (click here).

Written by: Istvan Fekete. www.digitcom.ca. Follow TheTelecomBlog.com by: RSS, Twitter, Facebook, or YouTube.

Previous post:

Next post: