Comcast linked to T-Mobile US; Verizon out on Dish
The list of T-Mobile US suitors seems to be growing faster than an episode of “The Bachelor.” The most recent report has Comcast showing interest in the German-owned “un-carrier.”
Citing reputable sources, German publication Manager Magazin said that Deutsche Telekom, T-Mobile US’ parent company, is in talks with several companies including Comcast. DT reportedly feels that the TV subscriber company could be one of the more attractive options.
This comes after Dish Network has been rumored to be gathering the collateral to purchase the U.S.’ fourth-largest carrier. The report also said that Dish Network is still in the running, but Comcast is seen as a “better candidate” because of its stronger financial standing.
Comcast is no stranger to acquisition rumors. It was trying to iron out a deal to buy Time Warner Cable for quite some time. Many stood strongly opposed to the $45 billion deal because it would essentially create a cable monopoly if the two largest companies in the industry were to combine forces. Comcast later walked away from the deal citing regulatory concerns.
It has been no secret to industry sources that DT has been trying to unload T-Mobile US in order to get out of the American market.
The rumors date back as far as 2011 when AT&T was in talks to buy T-Mobile US for $39 billion, but by the end of the year stepped away from the deal after criticism from lawmakers similar to that of the Comcast/Time Warner deal. Lawmakers said the deal was potentially dangerous for customers and the wireless industry.
Analyst firm Macquarie Research weighed in on the merger speculation, saying it makes sense for DT: “Based on recent meetings our colleagues have held with DT [management], we believe that DT is more sold on the synergies created by fixed mobile convergence than by an improved midband spectrum position,” the firm said. “As such, we believe DT could retain a larger equity stake in Comcast or Newco than it would with Dish. As DT holds the cards with T-Mo, we think a deal with Comcast in the low- to mid-$40s, with a large stock component would be palatable for DT.”
Deutsche Telekom owns two-thirds of T-Mobile US with a current market capitalization valued at nearly $22 billion.
The rumored acquisition has already had an impact on Deutsche Telekom’s stock, inflating the value by over 2.5% at the time of publication.
So far, neither company has commented on the rumored deal.
In other merger news, there has been speculation that Verizon Communications might be interested in Dish Network. Verizon’s response to the rumored acquisition of the satellite TV service provider, however, is a resounding “no.”
When asked about the potential deal, Verizon CFO Fran Shammo said, “My answer is going to be one word: No.”
Verizon recently purchased AOL for $4.4 billion.
