Dish Network Corp (NYSE:DISH) is contemplating on the possibility of submitting a proposal to takeover T-Mobile US, Inc (NYSE:TMUS) next year, according to report from Reuters based on information obtained from people knowledgeable about the company’s plan.
It would be the second time for the satellite TV provider to compete in a takeover bid with Softbank (TYO:9984) if it would pursue its plan to acquire T-Mobile US, Inc (NYSE:TMUS). Last week, the Japanese telecommunications company was reportedly considering the idea purchasing the fourth largest wireless carriers in the United States in 2014.
Dish Network Corp (NYSE:DISH) competed against Softbank Corp (TYO:9984) in acquiring Sprint Corporation (NYSE:S) this year. The satellite TV provider offered to acquire Sprint for $25.5 billion, but eventually dropped its proposal and decided to focus on its attempt to purchase a large stake in Clearwire Corporation. Dish Network also abandoned its bid for Clearwire, which is majority-owned by Sprint.
According to sources, Dish Network Corp (NYSE:DISH) has been evaluating T-Mobile US, Inc (NYSE:TMUS) as a takeover target since losing its battle to acquire Sprint Corporation (NYSE:S). Sources said the satellite TV provider discussed its intention with Deutsche Telekom AG, majority owner of T-Mobile.
Charlie Ergen, founder and chairman of Dish Network Corp (NYSE:DISH) aims to expand the business of the company beyond pay TV market and wants to become a major player in the wireless industry. His primary objective is to offer a combination of services including video, voice, and high-speed internet.
Sources said Dish Network Corp (NYSE:DISH) does not want to stay out of the competition if Sprint Corporation (NYSE:S) eventually decides to offer a proposal to purchase T-Mobile US, Inc (NYSE:TMUS).
Observers in the technology industry believe that a merger between Dish Network and T-Mobile will face less scrutiny from regulators as competition will remain among the four largest providers in the wireless industry including AT&T, Inc (NYSE:T), Verizon Communications, Inc (NYSE:VZ), Sprint, and T-Mobile.
In 2011, the Department of Justice (DOJ) rejected the proposal of AT&T to buy T-Mobile citing that that the government wants to maintain the presence of four major competitors in the wireless industry.
The shares of T-Mobile US, Inc (NYSE:TMUS) climbed 2.14% to $27.25 per share while Dish Network Corp (NYSE:DISH) rose 0.55% to $55.29 a share on Wednesday.