Dish Moving In

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T-Mobile isn’t the only prospect for Dish Network, according to Seeking Alpha. The company could be contemplating a merger with Sprint instead. Dish has been collecting spectrum for a while now, and this might be the perfect opportunity to enter the mobile data market. Dish and Sprint went head to head when both companies wanted to acquire Clearwire’s spectrum. In the end, Sprint won but later Dish offered to buy Sprint for $25.5 billion in cash and stock..However the company had some issues obtaining sufficient financing, largely because SoftBank implied to investment banks that financing Dish would preclude their participation in the Alibaba IPO, where SoftBank is a substantial shareholder. According to Seeking Alpha, “Since Dish last attempted to acquire Sprint, Dish’s market valuation has increased by about 65%, indicating it is far more capable of buying Sprint now. If Dish cannot work with Sprint, it could move to buy T-Mobile, but a Sprint merger now appears a cheaper and more viable option than ever before for Dish.”

 

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