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