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Rumor: Dish Network & T-Mobile Merger Talks Stalled

July 16, 2015 - Written By John Anon

By now, most news followers will be well-versed in the reports which have circulated around T-Mobile and Dish Network. To briefly recap though, the rumor suggested that the two companies were planning on a merger. One which would see the strength of each company brought together in a complementary fashion. It was not difficult to see the motivation for T-Mobile, as they would be able to make use of Dish’s enormous spectrum stockpile. While, for Dish, the merger would give them a greater foot in the telecoms door, which is something the company has been after for some time.

Well, after the initial reports emerged, further reports also began to emerge detailing the likelihood of the deal. Some reports continued to come through suggesting the talks were ongoing while some analysts were reporting that they found it unlikely that a deal would go through at all. The bottom line the analysts were making – there did not seem to be enough motivation for either company to really push forward with the deal. More specifically, enough reward in a market which is changing quite drastically and quickly.

Well, the latest on the Dish/T-Mobile saga is that those analysts may have been on to a good point. A report emerging from the Wall Street Journal today notes the talks between Dish and T-Mobile have come to a halt. According to “people with knowledge of the matter“, the sticking points for the talks refer to the valuation and the structure of the deal. Of course, specific details were not provided and the sources wished to remain secret due to the talks being private and still ongoing. However, the point being made by the sources was the slowing down of the momentum of the deal, is likely to have an impact on the overall chance of the deal going through. In particular, with the next auction due to take place soon, the sources believe that if a deal is not reached imminently, then the focus of the companies will shift towards the new auction and away from each other. This point is especially relevant to T-Mobile, as if they go forward with the Dish deal, then they will not need to spend on additional spectrum during the auction.

According to the sources, the deal is currently in Dish’s hands. The sources state that the parent company of T-Mobile, Deutsche Telekom has made their terms clear and it is up to Dish to move the deal forward now… and in time.