DISH to buy T-Mobile in 2014?
Ergen could be battling Masayoshi Son once again, if he decides to try to purchase T-Mobile. Son's SoftBank battled DISH for Sprint and it was the Japanese firm that won out. SoftBank now owns 78% of Sprint. And with rumors that Sprint will be be going after T-Mobile itself, that would mean that once again SoftBank and Son are standing in the way of Ergen's dream of owning a mobile carrier.
T-Mobile has re-invented itself in 2013 and was clearly the most innovative of the four major U.S. carriers. Led by charismatic John Legere, a CEO who dresses like a rock star and isn't afraid to shake things up, T-Mobile stopped offering subsidized phones and started a plan to allow customers to enjoy multiple equipment upgrades over the course of a year. In addition, it offers free unlimited data in over 100 countries and did away with credit checks when opening certain accounts. And T-Mobile is giving tablet owners with an account, 200MB of free data each month. The carrier has also been been adding new subscribers with 1 million added in the third quarter.
No matter who bids for T-Mobile, the company will have to deal with Deutsche Telekom. The huge German carrier owns 67% of T-Mobile and there is speculation that DISH has already been talking with Deutsche Telekom. DISH has a market cap of $25 billion while T-Mobile is valued at $21 billion. Already, analysts are saying that a Sprint purchase of T-Mobile would create a carrier still smaller than Verizon and AT&T and would go against the government's desire to keep four major carriers competing against each other. On the other hand, a DISH purchase of T-Mobile would strengthen the latter and meet the wishes of the government.
source: Yahoo via Reuters
1. LiyanaBG (Posts: 288; Member since: 07 Nov 2013)
hell to the no! Tmobile is perfect alone like this
2. tigermcm (Posts: 695; Member since: 02 Sep 2009)
wth is wrong with DISH let it go man just let it go. isnt this their 4th time trying to buying someone?
3. o0Exia0o (Posts: 343; Member since: 01 Feb 2013)
With Dish's spectrum holdings this could benefit T-mo especially in rural areas that T-mo does not currently cover. This could give T-mo the added spectrum that it need to be a serious contender against the other big 3 carriers. Though I don’t know if a complete buyout of T-mo from Deutsche Telekom would be possible for Dish I could see more of a buyout of the shares that Deutsche Telekom does not own and maybe some of shares that Deutsche Telekom owns making Dish close to a majority share holder of the company while Deutsche Telekom maintains a strong presence in T-mo. Something like a Verizon/Vodaphone arrangement. I don't thank that the feds will let Sprint buyout T- mo, reducing the number of major carriers in the US from 4 to 3, so this may be the next step for the US cellular market. That's just my opinion though.
4. Droid_X_Doug (Posts: 5620; Member since: 22 Dec 2010)
Dish hasn't wanted to put $ into the acquisition, so it will probably try another LBO if it attempts to acquire T-Mo. In that circumstance, T-Mo is better off on its own.
Separately, Sprint would probably face reduction in competition concerns if it were to attempt an acquisition.
Hopefully T-Mo is able to fend off Dish. The U.S. cellular market needs more not less competition.
5. andynaija (Posts: 456; Member since: 08 Sep 2012)
I wish these companies would just leave T-Mobile alone!! At least for a couple of years.
6. mike2959 (Posts: 216; Member since: 08 Oct 2011)
TMO is like that girl we all knew in High School. The one that kinda got around. She has fooled around with Dish a couple times, AT&T a couple times, Sprint a couple times.. A private equity firm. Girl keep your legs crossed!
16. g2a5b0e (Posts: 2121; Member since: 08 Jun 2012)
That's a horrible analogy. She's more like the ugly duckling turned into the swan. No one wanted anything to do with her before, now everyone wants a piece.
7. nvitone23 (Posts: 3; Member since: 19 Dec 2013)
The thing that you guys don't understand is that Google is teaming up with Dish to buy T-Mobile! ;)
9. axllebeer (Posts: 265; Member since: 05 Apr 2011)
Actually I'm teaming up with Sprint to buy Google. :p
10. lsutigers (Posts: 712; Member since: 08 Mar 2009)
Lets see the proof. This was talked about a year or so ago when Dish and Google were rumored to buy Sprint and nothing came of it. It's called a rumor.
11. nvitone23 (Posts: 3; Member since: 19 Dec 2013)
Its not called a rumor though...I know someone with info on this matter. As of last month, Google handed money to T-Mobile to help them win the 600 MHz auction.
And they were going for Sprint but Softbank beat them to the punch. T-Mobile is their only option left and the FCC won't let Sprint acquire T-Mobile therefore it is very likely that, as of now, Dish/Google will buyout T-Mobile.
8. zennacko (Posts: 227; Member since: 16 Jun 2013)
The biggest problem on this deal: If it's done, I bet John Legere wont be the craziest-yet-coolest CEO anymore, he won't be allowed to do what he does because there will be even more hungry shareholders looking for short time profit, thus, T-Mo is bound to fail if they ever "cut the wings" of Legere.
14. ePoch270 (Posts: 91; Member since: 26 Sep 2013)
Ergen is a pretty good CEO in his own right. They're from a similar mold, So, as long as Ego's don't prevail, I bet Legere would be allowed to drive the ship with Ergen' oversight. My .02
15. ePoch270 (Posts: 91; Member since: 26 Sep 2013)
I worry that the Fed's might poop a cat if they saw that Google, Dish and T-mo were one big happy family. Rockstar would probably pour a Billion Dollars into Lobbying to prevent this.