This Day On The Street
Continue to site
ADVERTISEMENT
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

Intel Backs SoftBank Offer for Sprint Over Dish

Dish's proposal for Sprint may put the company "in play" for merger or partnership attempts given the ambition and financing attached to its proposal, according to Walter Piecyk, telecom analyst at BTIG.

"Charlie Ergen's latest move not only puts Sprint in play but it might have done the same for Dish," Piecyk wrote in a Friday note to clients.

Piecyk highlighted that some partners could be attracted to a deal because of the amount of debt attached to Dish's proposal, while others may want to put cash up to support Ergen's efforts at building the nation's first bundle of unlimited broadband, data and video service.

Apple (AAPL - Get Report), Google (GOOG), NTT Docomo (DCM), DirecTV (DTV) and AT&T (T) are among the potential suitors cited by Piecyk in his analysis.

Piecyk, the BTIG analyst, noted that some in the wireless industry may want Dish's highly leveraged proposal for Sprint to win out over SoftBank's offer because it could return the carrier to a position of financial distress.

"The wireless industry might prefer Ergen to win over Softbank because Ergen's resulting debt leverage would hamper his ability to invest the necessary capital to be competitive," Piecyk wrote.

Still, given Ergen's streak for innovation and disruption of seemingly high-barrier industries, there are some who would want to support his ambition. Piecyk noted the wireless spectrum Dish brings to a potential deal, in addition to a new nationwide content service that could bolster the growth of streaming services such as Netflix (NFLX) and HBO Go.

-- Written by Antoine Gara in New York.

2 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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $110.37 -1.75%
DISH $59.78 0.98%
INTC $29.08 1.68%
S $5.05 1.00%
VZ $45.72 0.82%

Markets

Chart of I:DJI
DOW 16,374.76 +23.38 0.14%
S&P 500 1,951.13 +2.27 0.12%
NASDAQ 4,733.4970 -16.4820 -0.35%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs