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Dish, T-Mobile US in merger talks

Thursday, June 04, 2015 - 01:45

A deal would give Dish broadband service and allow it to use its stash of wireless liecenses to bolster T-Mobile's network, says the Wall Street Journal. Fred Katayama reports.

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Another mega media merger in the works. The Wall Street Journal reporting that Dish Networks is in early stage talks about merging with carrier T-Mobile US. It would combine the U.S.' second largest satellite TV operator with the fourth largest wireless carrier. T-Mobile US head John Legere would become CEO of the combined company, and Dish co-founder Charlie Ergen would serve as chairman. Here's how both sides could gain, according to the Journal: For Dish, T-Mobile would give it a broadband service and allow it to make use of the huge stash of wireless licenses it has amassed. For T-Mobile, those airwaves would help beef up its network to better compete against Verizon and AT&T, and it could gain subscribers. Shares of T-Mobile US and Dish rose sharply in early trading. Macquarie Research analyst Amy Yong says Dish could dish out up to $40 a share for T-Mobile in cash and stock, which would be slightly higher than Wednesday's closing price. She says a deal woud "make a lot of sense. There's a convergence of services in mobile networks and mobile TV, which is a big focus for Dish." Dish recently launched the video streaming service, Sling TV. And J.P. Morgan analyst Philip Cusick said, "T-Mobile's customers could match up well to the target demographic for Dish's Sling product, young people who likely live alone and don't pay for video today but are very likely to have a smartphone and could be interested in home broadband cord as well." Analysts say regulatory approval won't be an issue because the companies' services don't overlap, but they may have to divest of some spectrum. T-Mobile's talks with Sprint broke up last year after they faced resistance from regulators.

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Dish, T-Mobile US in merger talks

Thursday, June 04, 2015 - 01:45