Fueling the DTV-Dish Merger Fire

by Christopher Freeburn | January 14, 2013 12:44 pm

Fueling the DTV-Dish Merger Fire

dish network185 Fueling the DTV Dish Merger Fire[1]An analyst says that Dish Networks’(NASDAQ:DISH[2]) bid to buy Clearwire (NASDAQ:CLWR[3]) could make it harder for other companies to try and purchase the satellite TV service provider[4].

TMF Associates consultant Tim Farrar thinks that satellite TV rival DirecTV (NASDAQ:DTV[5]) would be less likely to try and acquire Dish, if Dish succceeds in wresting Clearwire away from Sprint (NYSE:S[6]), the Wall Street Journal noted.

Farrar also noted that  AT&T (NYSE:T[7]) might be interested in acquiring Dish in order to obtain its wireless spectrum.

Last week, Dish announced that it would make a $5.15 billion bid to acquire Clearwire[8]. Sprint, which already owns half the company, announced last month that it would purchase the outstanding stake in the wireless broadband provider. Analysts suspect that the Dish offer is meant to obtain wireless spectrum controlled by Clearwire.

DirecTV CEO Mike White has recently said that while a merger between DirecTV and Dish would have some benefits, the two companies are not involved in formal talks over the possibility.

Shares of Dish Networks slipped fractionally in Monday midday trading.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/09/dish_network185.jpg
  2. DISH: http://studio-5.financialcontent.com/investplace/quote?Symbol=DISH
  3. CLWR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CLWR
  4. purchase the satellite TV service provider: http://blogs.wsj.com/deals/2013/01/14/clearwire-bid-may-spark-interest-in-dish-network/?mod=yahoo_hs
  5. DTV: http://studio-5.financialcontent.com/investplace/quote?Symbol=DTV
  6. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  7. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  8. to acquire Clearwire: http://investorplace.com/2013/01/move-over-sprint-dish-makes-5-15b-bid-for-clearwire/

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