NEW YORK (TheStreet) -- Dish Networks (DISH) spiked after reports the satellite TV provider is in talks to acquire T-Mobile U.S. (TMUS), a move that could push the company into the wireless business in a meaningful way. Wireless carrier Sprint (S) tanked as investors feared it may be left on the sidelines of the telecom and media merger mania. Ericsson (ERIC) jumped after an analyst upgrade.
Dish Networks soared 4.9% to close at $74.25.
The satellite TV and entertainment company is reportedly in talks to buy T-Mobile U.S, which has undergone a round of unsuccessful buyout talks with other suitors. Sprint, for example, dropped its plans to acquire T-Mobile after regulators weighed in with concerns about a shrinking market of major U.S. carriers. Iliad SA also halted its T-Mobile acquisition plans in October, according to a Reuters report.
The Dish and T-Mobile buyout talks, which Bloomberg noted in a report, are slow moving and had resumed in September but largely have failed to move much further since then.
The CEO of Dish Network has been negotiating with Deutsche Telekom AG, T-Mobile's controlling shareholder. Dish's interest in the telecom carrier apparently is centered on giving Dish an entry point into mobile video that could potentially compete with pay-TV, according to Bloomberg.
Also, a Dish and T-Mobile deal would transform T-Mobile into the No. 2 carrier in terms of the treasure trove of spectrum licenses, or airwaves, that T-Mobile would gain as a result of a merger, according to Reuters. That would put it past behemoths AT&T (T) and Verizon Communications (VZ) and behind Sprint, according to Reuters.