WSJ: T-Mobile, Dish Network in merger talks

WSJ: T-Mobile, Dish Network in merger talks
There have been rumors for over a year, but this is the first hard report saying that T-Mobile USA and Dish Network are in talks to merge the two companies. The Wall Street Journal is reporting that while an announcement is not imminent, there is already agreement about how the merged company would look, and how the management would be placed.

Dish CEO Charles Ergen would be the combined company’s Chairman of the Board and T-Mobile CEO John Legere would be the Chief Executive. Both companies have a similar market capitalization, $31-33 billion.

T-Mobile is already a very lean organization, and while its subscriber growth is outpacing the entire US market combined, it is not as cash flush as Dish. On the other side of the coin, Dish is contending with a reduced growth market that is subscription TV service.

A plus for both companies is that Dish owns huge amounts of spectrum, much of it nationally licensed and, pretty much zero has been built out for use by anyone. That could be a big feather in T-Mobile’s hat to build out its footprint.

The negotiations are still in a “formative stage,” meaning that an agreement is not guaranteed, a real possibility since Dish CEO Charles Ergen has not been able to close a major deal to bring the satellite TV company into the wireless business. However, T-Mobile's parent Deutsche Telekom has been looking to sell off T-Mobile, or merge it with another company, so there may be more amiable motivations all-around.

source: The Wall Street Journal

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9 Comments

1. shiftt

Posts: 333; Member since: May 03, 2015

Where? Who? T-Mobile merge where? With who? Hm. For real.. Oh really? That's how Dish Network feels?

6. astronaut

Posts: 6; Member since: May 10, 2012

Asking all them question, making statments ....Assuuuming!

2. threed61

Posts: 259; Member since: May 27, 2011

Dish chairman Ergen is one of America's most renowned corporate micro-managers. A couple years ago Dish was called the worst company in America to work for. Just don't see Legere sticking around long.

9. thxultra

Posts: 446; Member since: Oct 16, 2014

Would be a bone head move by Ergen to lose Legere. Legere has really turned T-Mobile around. Service has greatly improved and subscriber growth is through the roof because T-Mobile has become so consumer friendly.

3. waddup121 unregistered

nice!!!

4. andynaija

Posts: 1255; Member since: Sep 08, 2012

God forbid such thing!

5. youlookfoolish

Posts: 193; Member since: Dec 14, 2012

This is not a shock. T-mobile has been in trouble and on the block forever. AT&T, Sprint, Iliad, now Dish. Someone is going to buy them. T-mobile is ultimately still the last place tier 1 US carrier to this day bleeding money. They spent so much money converting customers only for half of them to wind up on prepay. It pleases me to see them not succeed honestly. All of the hype and crazed fan boys were reaching Apple levels of overhype and hysteria. After the AT&T money was spent their network was still far and away last place according to any reputable source like root metrics. Now, they are finally seeing backlash from their over the top hip marketing by biting off more than they can chew with Verizon and getting called out for it. The people still claiming T-Mobile drives competition aren't seeing the massive consumer backlash over equipment financing and it is showing up in T-Mobile 's bottom line. Good riddance. I hope the US government gets out of the way, and Legere finally goes away.

7. Salazzi

Posts: 537; Member since: Feb 17, 2014

An appropriate name, for such a clown.

8. g2a5b0e unregistered

The guy has a hard-on for T-Mobile bigger than the Washington Monument. Pretty pitiful how someone can have such strong feelings for something that doesn't affect him in the slightest.

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