Follow
Mergers and acquisitions aren’t just omnipresent among pharmaceutical companies. Telecommunication giants are in constant discussions and only four months ago, T-Mobile had warned consumers about a possible competition threat. For the third time in just shy of five years, the cellular provider may be looking for a deal.
Sources familiar with the issue report that T-Mobile is already discussing a possible deal with Dish Network Corp., although negotiations are still confidential.
The US scene has already experienced massive mergers and deals which will effectively reshape the way that end-users receive broadband, mobile and video services. And when news emerged that Dish may be looking to acquire T-Mobile, the company’s shares jumped a whopping 3 percent. Dish’s stock jumped 5.
Though sources in on the discussions declined to reveal much information, we already know that the deal would imply that the newly-formed company would be run by Joh Legere as CEO. Dish’s current CEO, Charlie Ergen would assume the position of chairman.
But the entire deal depends on one ssential aspect: Dish’s spectrum and how partners would be allowed to use it. With Dish’s infrastructure, T-Mobile would set itself leagues in front of both AT&T and Verizon Communications and become the second leading company in terms of airwaves.
Other companies, such as Sprint Corp, have continuously struggled to build their own networks because, earnestly speaking, a communication company is nothing without spectrum.
“(Dish CEO) Charlie Ergen went and bought spectrum like there’s no tomorrow because there is no tomorrow without spectrum,” Roger Entner, Recon Analytics analyst explains.
If such a deal were to be struck, it would highlight 2015 as the year with one of the strongest deal-making periods on the global media and entertainment scene for the past 15 years. Other industry acquisitions involve AT&T, which is hoping for its federal approval to acquire DirecTV and Verizon, who recently announced its intentions of acquiring AOL.
In fact, in 2015 alone, merger and acquisition activity has accounted for $155.3 billion, showing how determined such providers are to ensure their positions on the market.
Though no offers have been made public yet, analysts such as Macquarie’s Amy Young believe that share prices could reach $40. Additionally, experts believe that a potential deal between Dish and T-Mobile wouldn’t be strong-armed by regulators.
“Adding Dish’s spectrum and video assets expertise would clearly make T-Mobile a more formidable competitor to AT&T and Verizon,” Paul Gallant, Guggenheim Securities analyst said.
What remains to be seen is whether mobile providers will succeed in satisfying a market of increasingly harder-to-satisfy consumers.
Image Source: Consumerist
Latest posts by Anne-Marie Jackson (see all)
- SF Hospital Slaps New Parents with $19K Bill for Baby Treatment - Mar 11, 2019
- Furious Trump Blasts Harley-Davidson for Moving Production Overseas - Mar 11, 2019
- Warning! MRI Machines Could Poison You - Mar 11, 2019
