Communication companies are hooking up around us as we speak. Mobile carrier AT&T is buying satellite provider DirecTV. Cable distributor Charter is acquiring rivals Time Warner Cable and Bright House Networks. Now T-Mobile is looking to merge with Dish Network, according to The Wall Street Journal.
The two sides apparently agree on how the combined company would look. T-Mobile CEO John Legere would serve as CEO, while Dish Chief Executive Charlie Ergen would be the chairman. But they haven't yet come to an agreement on how much money would exchange hands.
This merger draws obvious parallels with AT&T's acquisition. A DirecTV-enhanced AT&T and a combined T-Mobile/Dish would both provide cellular service, satellite TV, and Internet access through either satellite or mobile networks. As for why T-Mobile and Dish would both be interested, well, they each have their reasons. Despite recent growth, T-Mobile is still struggling to catch up with the likes of AT&T or Verizon. Dish owns billions of dollars worth of wireless licenses that it doesn't yet know what to do with, and it lacks the kind of broadband service that could offset declining TV costs.
This news comes half a year after T-Mobile's German owner Deutsche Telekom said that the only way to make the un-carrier's business sustainable long-term would be through a merger. After a failed attempt to pair with Sprint, ownership remains unswayed in its desire to end up with someone. Dish and T-Mobile have both swiped right. Now it's just a matter of seeing if their relationship can get off the ground.
Alternate title: T-Mobile/Dish CEO John Legere Rolls Out Un-Satellite 1.0
- The Wall Street Journal