Shares of DISH Network Corp (NASDAQ:DISH) gained this morning following reports that Amazon.com, Inc. (NASDAQ:AMZN) will be a foundational customer of a wireless network that the satellite company hopes to establish. DISH stock was up as much as 2.5% on the news.
Reports surfaced this week as independent satellite retailers gathered this week in Dallas for the industry’s annual trade show. According to multiple media reports, it was not known if Amazon would take a stake in DISH or its prospective wireless business.
Amazon is expanding its video and film business, including offering live channels, original programming and a recently announced agreement with the NFL to distribute Thursday Night Football games on-line to its AMZN’s best customers next season.
DISH Network has invested $21 billion to buy wireless spectrum. However, it has no customers and thought to lack a strategy for the business, though analysts have posited that the bandwidth could one day play a leading role in the Internet of Things.
DISH in March joined the S&P 500, taking over semiconductor company Linear Technology Corporation’s (NASDAQ:LLTC) spot on the index.
AMZN stock is down slightly today, after gaining more than 27% this year.