Report: T-Mobile is a takeover target again

Report: T-Mobile is a takeover target again
Earlier this year, T-Mobile and Dish Network were said to be closing in on a merger between the two companies before things stalled in July. Since then, it seems that the two have gone their separate ways with nary a peep about a takeover mentioned in the last few months. But Wall Street is once again considering T-Mobile to be a possible acquisition target following the news that Cablevision is being bought by French telco Altice for $17.7 billion.

With Cablevision getting snapped up today, there are no longer any more obvious choices for huge acquisitions in cable, which is why Wall Street is turning its attention to wireless. That doesn't mean that there aren't real synergies available from the purchase of a wireless operator like T-Mobile. Even the carrier's outspoken CEO John Legere believes so. Back in July, Legere said that a Comcast -T-Mobile deal would be logical. Rumors of such a tie-up date back to May of 2014.

Altice Chairman Patrick Drahi tweeted that he could see his company making a play for a company in mobile, although such a move would not happen next week, and would take time. Liberty Media Chairman John Malone might also have an interest in wireless. But Malone says that the industry needs to go through some pricing problems first, before prices to buy a company like T-Mobile become reasonable.

BTIG analyst Walter Piecyk raised his target on T-Mobile's shares to $50 this morning, noting that the third largest carrier in the U.S. will throw off $3 billion in free cash flow next year. That is a stream of cash that a company could use to help buy T-Mobile in a leveraged buy-out. The company's shares closed today around $42. Last year, French telecom firm Iliad offered $36 to buy 67% of the carrier, before deciding not to proceed with the deal.

source: FierceWireless

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9 Comments

1. Dr.Phil

Posts: 2340; Member since: Feb 14, 2011

It should be alarming to consumers that there are so many acquisitions and merging going on in the market. Less competition will only end up hurting consumers in the end.

2. combatmedic870

Posts: 984; Member since: Sep 02, 2015

I agree! This is Worrisome

5. strudelz100

Posts: 646; Member since: Aug 20, 2014

The acquisition behavior is because the Fed has set the interest rate at 0% for the chosen few which the money pipes flow directly to. The elites can borrow any amount of money and have no risk, because there is no cost on the loan. This and various decisions to overturn important regulations is why the acquisition behavior is happening.

3. smacsteve

Posts: 86; Member since: May 16, 2012

What I would love to see is for a Comcast/T-Mobile merge and then Apple to buy out this mega combo and build the greatest television/internet/mobile wireless company in the world! I wouldn't count this out at all!

4. Bigg6987

Posts: 14; Member since: Aug 18, 2013

I won't debate how possible or impossible this could/would be. All I will say is that I hope your scenario NEVER happens. The pricing would get ridiculous if Apple owned T-Mobile. Thanks, but no thanks. I'm not ready to shop for a new wireless carrier.

8. TreyTreyTaylor

Posts: 728; Member since: Dec 21, 2010

Yea. I'm over here like, I want some of what he's smoking lol. That would TRAGIC for the consumer.

7. techloverNYC

Posts: 601; Member since: Nov 20, 2012

Apple definitely have the money to do it but I highly doubt the government would allow a single company become so powerful.

6. Angst

Posts: 35; Member since: Apr 29, 2014

What you just described would be a multi-abomination Comcast and T-Mobile should *NEVER* merge. Comcast is the Verizon of Cable, and T-Mobile would be set back 10 years from all the garbage comcast would do to them (Uncarrier has left the building) And Apple . . . . ha ha ha. That's worse than Comcast itself. Apple's whole theme is to dictate what you can and cannot do with what they sell you and for your obedience you are allowed to pay them the high Apple Tax.

9. TreyTreyTaylor

Posts: 728; Member since: Dec 21, 2010

Not trying to be mean. But I dont think he thought that through.

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