I mean is it that time of year again. This was in the Morning Bridge today.
DISH Options: Fly Solo or Merge?
Analysts keeping a close eye on DISH say the company has a couple options with regard to its wireless plans: Either go it alone or find a partner. And while observers know that Charlie Ergen would rather keep the business in-house, consensus is that DISH won't fly solo on its wireless voyage.
According to Citi's Jason Bazinet, investors expect DISH could sell to either DIRECTV or AT&T due to three key factors: 1) AT&T faces a spectrum shortage, 2) a DBS merger has significant upside, and 3) the video market is more competitive than it was in 2001 when the two satellite companies originally tried to join forces. However, the analyst says, a DISH sale is still unlikely.
It's no secret that AT&T could use DISH's spectrum, and Bazinet says a DIRECTV-DISH merger indeed has enticing cost synergies... to the tune of $3B per year. "But the video market is probably not competitive enough to allow either AT&T or DIRECTV to acquire DISH," he says. "Moreover, (the) FCC may be unwilling to facilitate spectrum aggregation by AT&T."
DISH Options: Fly Solo or Merge?
Analysts keeping a close eye on DISH say the company has a couple options with regard to its wireless plans: Either go it alone or find a partner. And while observers know that Charlie Ergen would rather keep the business in-house, consensus is that DISH won't fly solo on its wireless voyage.
According to Citi's Jason Bazinet, investors expect DISH could sell to either DIRECTV or AT&T due to three key factors: 1) AT&T faces a spectrum shortage, 2) a DBS merger has significant upside, and 3) the video market is more competitive than it was in 2001 when the two satellite companies originally tried to join forces. However, the analyst says, a DISH sale is still unlikely.
It's no secret that AT&T could use DISH's spectrum, and Bazinet says a DIRECTV-DISH merger indeed has enticing cost synergies... to the tune of $3B per year. "But the video market is probably not competitive enough to allow either AT&T or DIRECTV to acquire DISH," he says. "Moreover, (the) FCC may be unwilling to facilitate spectrum aggregation by AT&T."
.
