The Wall Street Journal reported that Dish Networks is in talks to merge with T-Mobile US, which would put Dish Chief Executive Charlie Ergen as the company’s chairman with T-Mobile’s John Legere as CEO. As expected, industry analysts have a lot to say about this potential deal:
Colby Synesael of Cowen and Company: “We have called out in multiple recent reports that we view T-Mobile as an ideal and attractive takeout candidate given the only viable U.S. wireless assets available. On that note, while timing is not ideal we think cable MSO’s including Comcast could revisit strategic options and also make an offer for T-Mobile…We believe regulatory [issues] would be a non-issue and likely favored considering 1) the FCC approval of AT&T and DirecTV is eminent and 2) four players will remain in the market with an even stronger competitor against AT&T and Verizon. Derivative calls: would be viewed as negative to Sprint who effectively gets nothing while T-Mobile/Dish get stronger, positive for the towers where risk of a Sprint/T-Mobile merger goes to zero and we get more clarity on how/when Dish spectrum would get put to work, and we’d argue negative to AT&T/Verizon from the perspective T-Mobile would be a more formidable competitor.” Continue reading here.
Colby Synesael of Cowen and Company: “We have called out in multiple recent reports that we view T-Mobile as an ideal and attractive takeout candidate given the only viable U.S. wireless assets available. On that note, while timing is not ideal we think cable MSO’s including Comcast could revisit strategic options and also make an offer for T-Mobile…We believe regulatory [issues] would be a non-issue and likely favored considering 1) the FCC approval of AT&T and DirecTV is eminent and 2) four players will remain in the market with an even stronger competitor against AT&T and Verizon. Derivative calls: would be viewed as negative to Sprint who effectively gets nothing while T-Mobile/Dish get stronger, positive for the towers where risk of a Sprint/T-Mobile merger goes to zero and we get more clarity on how/when Dish spectrum would get put to work, and we’d argue negative to AT&T/Verizon from the perspective T-Mobile would be a more formidable competitor.” Continue reading here.
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