Dish Network shares rise on speculation of bid by AT&T
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Shares of Dish Network Corp. surged Thursday after an analyst said AT&T Inc. might make a bid for the satellite television provider.
Jonathan Chaplin, an analyst at Credit Suisse Group, said that Dish’s wireless-spectrum assets — which could enable a partnering phone carrier to offer a “triple play bundle of video, voice and data” services — are key to its appeal.
As part of AT&T, Dish would “almost certainly” see a boost in subscribers and probably a drop in installation and customer service costs, Chaplin wrote. AT&T would be able to negotiate lower content and programming costs for its U-Verse television and Internet business.
“The strategic value of spectrum speaks for itself –- spectrum is in limited supply,” Chaplin wrote. “AT&T has borne painful witness to the impact of rising smart phone penetration on its wireless network.”
Dish shares rose $1.31 to $23.49, while AT&T gained 27 cents to $28.24.
Several years ago, Dish turned down an offer from AT&T, Chaplin wrote. But now that AT&T is satisfied with the government’s position on net neutrality regulations, it makes sense for the company to try again. A deal with Dish, one of the country’s largest satellite television providers, would probably require approval from the Federal Communications Commission and the Department of Justice.
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