DISH Network Corp (DISH) Ready to Explore T-Mobile US Inc (TMUS) Acquisition Deal

DISH Network Corp (DISH)

Charlie Ergen, DISH Network Corp (NASDAQ:DISH), reached out to Deutsche Telekom AG (ETR:DTE) to discuss the acquisition of T-Mobile US Inc (NYSE:TMUS) in near future. Ergen is interested in the deal after Sprint Corporation (NYSE:S) abandoned its quest to take over T-Mobile US Inc (NYSE:TMUS).

As per the current proceedings, Ergen has not made any formal offer for the acquisition, although he conveyed his interest to Deutsche Telekom AG (ETR:DTE). Ergen added,

“We remain interested in working to enhance our overall business. That could include looking at a number of companies that are out there. Obviously, the AT&T-DirecTV deal probably lessened some optionality we had. The Sprint announcement probably increased some optionality we had.”

DISH Network Corp (NASDAQ:DISH) is not the only company interested in the acquisition of T-Mobile US Inc (NYSE:TMUS), as Deutsche Telekom AG (ETR:DTE) received $15 billion offer from Iliad SA (EPA:ILD) for 56% stakes in T-Mobile. However, Deutsche rejected the offer saying that it is inadequate. Iliad SA (EPA:ILD) is in talks with potential partners to renew its offer with a higher bid.

DISH Network Corp (DISH)

DISH Network Corp (NASDAQ:DISH) is likely to initiate terms after the wireless airwave spectrum auction in November and the company is likely to offer a higher bid as compared to Iliad SA (EPA:ILD). Ergen said that the auction in November is “going to tell us kind of where we stand on a baseline value as a company.

Acquisition of T-Mobile US Inc (NYSE:TMUS) will allow DISH Network Corp (NASDAQ:DISH) to offer video content over a National Wireless Network and offer DISH an edge in the cable television industry. Further, it will strengthen T-Mobile US Inc (NYSE:TMUS) against other major U.S. mobile carriers.

This article has been written by Prakash Pandey.

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