An American direct-broadcast satellite service provider - Dish Network Corp. is in talks to merge with mobile operator company - T-Mobile US Inc., to accelerate a wave of incorporation across the US media and communication industries.
A person familiar with the case revealed that the talks to merge Dish Network / T-Mobile are in “formative” stages-it means the consolidation may happen or may not happen, but the job roles amongst the companies’ top brass appear to have been staked out.
Both the companies have agreed that Dish Chief Executive Officer – Charlie Ergen would be positioned as the chairman of the combined company, and T-Mobile Executive – John Legere would cement his position as the CEO of the combined company.
The deal makes a lot of sense, in an abstract that if both the companies agree to merge then their deal would be the largest multi-billionaire combination in traditional television and communication industries being upended by the Internet.
Recently, T-Mobile rival - AT&T un-wrapped its $49 billion deal for Dish rival DirecTV, which will make AT&T as the nation’s highest pay-TV company. At the same time, Charter Communication has announced to wrap of about $67 billion in deal that would roll up Bright House Network and Time Warner Cable, making it as the second-largest U.S. cable operator company.
A deal between Dish Network and T-Mobile would be very large, as T-Mobile is having a market capitalization of about $31 billion, which is a slight below than Dish’s $33 billion.
Dish Network has extensive harbored ambitions to romp in the wireless service space. Along with the two companies, early in this year, Dish Network has paid $13.3 billion for wireless spectrum in a government auction, while AT&T spent more, at $18.2 billion in the same auction.
Ultimately, Dish Network wants to build a robust wireless network, and now by merging with T-Mobile it will have an opportunity to play in wireless network. The scale could be put forth immediately to enhance the speed and reach of T-Mobile existing wireless network. Dish Network lacks a robust broadband network, and now it could use T-Mobile’s existing network resources to bolster that broadband service.