A Dish/Amazon Deal Is Not Likely to Happen Soon, Says Analysts

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This week, rumors of a Dish and Amazon deal started to surface, but analysts warn that a deal between the two likely won't happen anytime soon. Dish and Amazon aren't likely to merge, in fact that is very unlikely, and according to analysts that is because it would put Amazon in with the FCC, which is something tech companies want to stay away from. But a partnership between the two could still happen. With ideals floating around that Amazon could help foot the bill for a network build out for Dish, in exchange giving Prime members discounted phone service.

Dish has been in the midst of merger and acquisition or M&A talks for quite some time. Largely due to the fact that it has a fairly large portfolio of spectrum which it has not used yet. The FCC gives operators a grace period to start building out spectrum it purchases in auctions. And that period is almost up for Dish. So it needs to find a way to use that spectrum. Dish has been looking to get into wireless for quite some time, but it appears that Dish has been wanting to get a good deal in wireless. And not jump head first and risk going bankrupt. Since the wireless industry is already pretty competitive, and there are plenty of options already available. Now with Dish's immediate competitors jumping into wireless – Charter and Comcast – it's going to make things even tougher for the satellite company.

Amazon hasn't really shown any signs of wanting to get into wireless just yet. But it does have its own tablets and smartphones already on sale. So the only thing missing is indeed a network. Analysts are a bit cautious on what might happen between these two companies, and Dish has been looking for a deal for a while, and Amazon is far from the only good fit for Dish and its growing spectrum portfolio. So it'll be interesting to see what happens here and if Amazon and Dish do actually make a deal. Which would more than likely not include Amazon buying Dish outright.

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