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Deutsche Telekom CEO Prefers Sprint Deal To Dish Network

June 9, 2015 - Written By John Anon

Over the last week, the rumors around two specific companies had reached boiling point. This is of course, Dish Network and T-Mobile. The rumors, themselves, are not new and date back quite a long time. In fact, both of these companies have considerably been linked with other companies over the last few years, however, the thought of Dish and T-Mobile merging, seems to be one rumor which continues to run and run. Last week, saw the biggest igniting of the rumors when it was reported that the two companies were in advanced talks to bring the merge closer to reality.

Since the original news broke, reports have continued to come out detailing what would become of one, either or both if a merger were to happen. For instance, it was only yesterday that reports began to emerge from a MoffettNathanson senior analyst who made it clear that they believed the deal was unlikely to come to fruition, due to such a deal not being in either company’s interest. Well, it now looks like the first feelings of Deutsche Telekom are also coming to the surface. At least, the feelings of Deutsche Telekom CEO, Timotheus H¶ttges.

For those who are unfamiliar with Deutsche Telekom’s part in all of this, they are majority shareholders in T-Mobile and therefore, do have a stake in the outcome of this or any T-Mobile deal or move. In fact, most will remember the continued reports which emerged over the last year detailing how Deutsche Telekom was supposedly trying to sell T-Mobile. Well, according to a report from the NY Post, H¶ttges is reportedly not so keen on a T-Mobile/Dish deal and instead would much rather hold out for some sort of Sprint deal. The latest news comes from unnamed sources who advise that H¶ttges was noted telling investors his thoughts during the Toronto-based RBC Capital Markets last week. Although, the Sprint deal would be the preference right now, according to H¶ttges, the end game goal would see much more being gained from eventually selling (or partnering) T-Mobile with Comcast. According to H¶ttges, it was felt a deal with Dish now would essentially “kill” the prospect of a Comcast deal later on. Of course, in spite of having a larger shareholding in T-Mobile, Deutsche Telekom does not have control of the T-Mobile board, who are likely to be the deciding factor in what happens with any deal. At least from T-Mobile’s perspective.