DISH to buy T-Mobile in 2014?

DISH to buy T-Mobile in 2014?
In the old nursery rhyme, the dish ran away with the spoon. Now, it appears that the DISH might run away with the mobile operator. Back in August, DISH Network chairman Charles Ergen said that a bid for T-Mobile "may be a challenge we wouldn’t feel comfortable taking on." But after losing out on both Sprint and Clearwire, it seems that Ergen is more comfortable trying to undertake what will be a grueling ordeal. In other words, published reports on Wednesday evening are passing along the word that DISH will try to purchase the nation's fourth largest carrier 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

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16 Comments

12. kryme

Posts: 470; Member since: Oct 24, 2013

google should but t mobile....

13. nvitone23

Posts: 3; Member since: Dec 19, 2013

They will, with Dish.

15. ePoch270

Posts: 193; Member since: Sep 26, 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.

8. zennacko unregistered

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: 193; Member since: Sep 26, 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

7. nvitone23

Posts: 3; Member since: Dec 19, 2013

The thing that you guys don't understand is that Google is teaming up with Dish to buy T-Mobile! ;)

9. axllebeer

Posts: 272; Member since: Apr 05, 2011

Actually I'm teaming up with Sprint to buy Google. :p

10. lsutigers

Posts: 832; Member since: Mar 08, 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: Dec 19, 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.

6. mike2959

Posts: 701; Member since: Oct 08, 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 unregistered

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.

5. andynaija

Posts: 1268; Member since: Sep 08, 2012

I wish these companies would just leave T-Mobile alone!! At least for a couple of years.

4. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 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.

3. o0Exia0o

Posts: 903; Member since: Feb 01, 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.

2. tigermcm

Posts: 861; Member since: Sep 02, 2009

wth is wrong with DISH let it go man just let it go. isnt this their 4th time trying to buying someone?

1. LiyanaBG

Posts: 381; Member since: Nov 07, 2013

hell to the no! Tmobile is perfect alone like this

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