Reports earlier this week suggested that AT&T (T - Get Report) , which is currently being pressured to streamline its business and improve profitability by activists investors Elliott Management, is looking at ways in which it can divest itself of DirecTV from its broader portfolio.
However, the New York Post said the chances of a Dish-DirecTV deal "could be about as remote as a satellite that's orbiting the earth," because of regulatory constraints, specifically antitrust concerns from the Department of Justice that would stop a potential agreement in its tracks.
Sources told the Post that the DOJ also likely would be concerned that Dish is in the middle of acquiring assets from T-Mobile (TMUS - Get Report) as part of a deal to get T-Mobile's merger with Sprint (S - Get Report) cleared by U.S. regulators.
Under the T-Mobile deal, Dish will be forced to spend between $10 billion and $15 billion to build a fourth major U.S. wireless provider. To buy DirecTV, meanwhile, Dish would likely need to raise $10 billion in equity from buyout firms or other investors, the Post said.
Shares of Dish were down 0.68% at $35.20 in early trading on Friday, while shares of Sprint were down 0.45% at $6.71. Shares of T-Mobile were down 0.6% at $80.51.
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