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
TheStreet Open House

Dish Network's Earnings Revive DirecTV Deal Talk

Dish Network has played a front and center role in wireless industry consolidation, which picked up pace with AT&T's failed $39 billion bid for T-Mobile USA in 2011 and recent multi-billion dollar merger efforts between T-Mobile and MetroPCS (PCS) -- and Sprint (S) and Softbank of Japan.

The key is that after stepping down as chief executive of the company he co-founded, Dish Network chairman Charlie Ergen has spent billions combing bankruptcy courts for spectrum assets, which have turned him to a key figure in wireless industry consolidation.

In August, TheStreet profiled Dish Network, large investors in the company and analysts on the possibilities for Ergen's wireless ambition

After a weak third quarter earnings report marked by falling average revenue per user and costs related to the company's Blockbuster acquisition, Bryan Kraft of Evercore Partners reiterated the boutique investment bank's 'overweight' rating on Dish Network shares and $41 price target, which hinges on a sum-of-the-parts analysis that assumes the company will either be sold or divest its spectrum assets.

Already, Ergen has hinted that he might revisit a merger with DirecTV, after the blocked 2002 effort hit the company's finances. As AT&T was seeking approval of its $39 billion T-Mobile merger bid, Ergen said a regulatory approval of that deal would pave the way for a Dish - DirecTV tie-up. "If that merger is allowed to go forward, then I don't think there'd be any problem with us merging with DirecTV," Ergen said a year ago, on a third quarter 2011 conference call with analysts.

Meanwhile, Hollywood Reporter reports DirecTV CEO Michael White said the company could wireless revisit a merger with Dish Network at Goldman Sach's Communacopia Conference in September, given the consumer benefits of a tie up.

Still some risks to M&A speculation remain. Bloomberg reported in June the Department of Justice has begun to look into pricing arrangements between Dish and DirecTV. Meanwhile, Dish recently settled a bitter carriage dispute with AMC Network, which some said raised the prospect that Ergen could fall out of favor with regulators who'd be key to any M&A efforts. Already, Ergen has complained a slow regulatory approval process has hampered the company's wireless efforts and given potential competitors like AT&T a big head start.

While Dish Network's M&A fortunes have changed dramatically since the summer amid a frenetic pace of carrier mergers, analysts continue to see the company as a key player in wireless industry consolidation. To be seen is how that might take form.

-- Written by Antoine Gara in New York

2 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

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
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, 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
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs