This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

The Deal: Ergen's Dish Choices Get Slimmer

NEW YORK ( The Deal) -- T-Mobile USA (TMUS) is the best merger partner for Dish Network (DISH - Get Report) --unless the satellite TV company combines with rival DirecTV (DTV).

Dish chairman Charlie Ergen addressed the strategic options during a Tuesday, Aug. 6, investor call that featured questions from journalists as well as analysts.

Ergen addressed issues ranging from his pursuit of Sprint Nextel (S) and Clearwire (CLWR), to future M&A possibilities, and Philip Falcone's allegations of fraud in the LightSquared bankruptcy, in which Ergen is a creditor.

Following Softbank Corp.'s purchase of Sprint and Clearwire, Ergen acknowledged, T-Mobile USA is the last wireless carrier that Dish could purchase. "You just looked at a full blown acquisition and our merger and really that's probably only T-Mobile at this point in time," Ergen said.

Dish could still negotiate a partnership or networking deal with Sprint and Clearwire, he said. The due diligence that Dish conducted for its bids for the two telecoms could serve as legwork for a partnership or networking deal with Sprint's new owner.

"I don't know the Softbank executives at this point but they seem very innovative and creative and they certainly seem to be more aggressive than maybe some of the other people in the wireless business," Ergen said, "so I think there's a lot of similarities between the way we think and perhaps the way they think."

Consolidation among cable operators and the increasing rates that content providers are charging could force Dish to look for other deal partners, though. "There's not any question that putting Dish and DirecTV together makes a lot of sense," Ergen said.

There are strategic differences. Unlike DirecTV, Dish has been looking to get into wireless. It's possible that the market or regulatory issues would prove one of the satellite companies wrong. Ergen said he would give up his wireless ambitions if he saw they could not succeed.

"We aren't suicidal about it," he said.

The U.S. Department of Justice rejected a combination of the satellite TV companies a decade ago, but Ergen suggested that the market has changed. Phone companies including AT&T (T - Get Report) and Verizon Communications (VZ - Get Report) have entered pay-TV and are growing. And, of course, Netflix (NFLX), Hulu and Amazon (AMZN - Get Report) have emerged as major video players.
1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
CLWR $0.00 0.00%
DTV $0.00 0.00%
AMZN $678.00 -0.86%
DISH $48.04 -1.80%
S $3.57 2.30%


Chart of I:DJI
DOW 17,741.49 -149.67 -0.84%
S&P 500 2,062.50 -18.93 -0.91%
NASDAQ 4,769.5430 -48.0510 -1.00%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs