According to a Reuters report, Dish has spoken to Deutsche Telekom (DTE.DE), the majority owner of T-Mobile, about a possible deal. The satellite TV company hasn't made any official bids yet, but it could do so next year.
A bid for T-Mobile would be the second time Dish bid to acquire a U.S. wireless carrier. Earlier in 2013 the company bid to acquire Sprint, but was outbid by Japanese carrier Softbank (TYO:9984).
The Softbank-owned Sprint is reportedly preparing its own bid for T-Mobile in the first half of 2014. If both Sprint and Dish go through with the plans, it could result in a bidding war between the two for the fourth-place U.S. carrier.
Shares of T-Mobile are up 5.6% to $28.78, and shares of Dish are up 1.3% to $55.99 during Thursday trading.
TheStreet Ratings team rates Dish as a "Hold" with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation:
"We rate DISH NETWORK CORP (DISH) a HOLD. The primary factors that have impacted our rating are mixed ? some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, increase in net income and growth in earnings per share. However, as a counter to these strengths, we also find weaknesses including weak operating cash flow and generally higher debt management risk."