Dish Network Talks Merger with T-Mobile

by Matt Klassen on June 5, 2015

While both Dish Network and T-Mobile have publicly entertained the notion of combining the nation’s second largest satellite TV operator with the country’s fourth largest wireless carrier before, it seems that the worst kept secret amongst recent mergers and acquisitions is inching ever closer to reality.

According to a report in the Wall Street Journal, the two companies are in talks regarding a merger, part of an increasing torrent of consolidation between traditionally separate media and communications industries. In fact, according to sources the leadership framework of the proposed deal is already in place in principal, “with Dish Chief Executive Charlie Ergen becoming the company’s chairman and his T-Mobile counterpart, John Legere, serving as the combined company’s CEO,” the report said.

Of course the tougher issues of purchase price and other cash and stock issues remain unresolved, placing this potential merger, as one source explained, in the “formative stage,” meaning that while both companies will likely move forward with some acquisition attempt, clearly nothing is written in stone.

If there’s one thing that can be said about this possible marriage between satellite and wireless, it’s that both sides are certainly never shied away from entertaining the possibility. As a report from Reuters explains, “A deal, which has been mooted in the past with senior executives from both companies having entertained it in public comments, would fit with Deutsche Telekom’s stated interest in partnerships to strengthen its U.S. business after failing to sell it last year. It would also join a wave of tie-ups in the telecoms and TV industries as companies look to add services for customers.”

Simply put, Dish Network has made no bones about the fact that it wants to enter the wireless market, but while it continues to horde valuable wireless spectrum resources, the satellite TV provider has made little effort to implement said resources, and the clock is ticking.

For T-Mobile, the last few years have seen a steady stream of potential and realized mergers as parent company Deutsche Telekom has long expressed its desire to divest itself of its U.S.wireless assets. But, of course, such divestiture has been easier said than done for the German telecom giant, as its landmark deal with AT&T fell through, forcing the company to change its tact and go on the offensive in the market in an attempt to make its T-Mobile subsidiary a more attractive target.

So while we’ve been talking about the potential for a Dish Network merger with T-Mobile for almost a year now, it does finally seem like the time is right for such an acquisition to become reality…that is if the details can get hammered out.

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

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