NEW YORK (Reuters) - The shares of No.2 U.S. satellite TV provider Dish Network Corp (DISH.O) rose nearly 6 percent after a brokerage published a research note that put a new spin on why telecommunications company AT&T Inc (T.N) could buy the satellite company.
Dish shares were up 5.9 percent at $23.87 at midday on the Nasdaq.
Credit Suisse analyst Jonathan Chaplin said in a client note that Dish founder Charlie Ergen has been adding substantial value to his media and telecommunications assets via an upward reevaluation of the spectrum assets his companies own.
AT&T could get “two pieces of highly valuable spectrum,” by buying Dish. Chaplin said Charlie Ergen, Chief of Executive of Dish could combine the wireless airwaves of its stake in TerreStar with its recent acquisition of DBSD.
“AT&T might find Ergen’s creation to be an enticing combination,” Chaplin said in the note.
In early February, Dish Network Corp bought DBSD North American, a hybrid satellite and land-band communications company for about $1 billion.
Analysts have long speculated AT&T might purchase Dish with a strategic view to bulking up the phone company’s pay-TV offering to better compete with cable companies.
Dish shares were up $1.26 to $23.44 on the Nasdaq.
Reporting by Liana B. Baker; editing by Andre Grenon