The companies have apparently discussed how Dish Network's Co-Founder and Chairman Charlie Ergen and T-Mobile USA Chief Executive and President John J. Legere would share power, according to The Wall Street Journal.
Satellite TV group Dish Network gained $3.69, or 5.2%, to $74.50 in Thursday trading, as talk of a merger between the satellite TV group and wireless carrier resurfaced. T-Mobile rose $2.22, or nearly 5.8%, to $40.55.
The deal makes great sense.
Among other factors, Ergen has acquired a trove of wireless spectrum and Legere's telecom is in need of more capacity. However, the value of Dish Network's spectrum portfolio could also pose a hitch.
DISH NETWORK CEO CHARLIE ERGEN
Dish Network executives told analysts at a Tuesday meeting that they think that the company's spectrum trove is worth $60 billion, Jonathan Schildkraut of Evercore ISI wrote in a Thursday report.
That figure is almost double T-Mobile's $32.3 billion market capitalization.
Even when factoring in the telecom's debt load, T-Mobile's enterprise value comes to $50 billion.
The relative imbalance could be a "sticking point" in talks about a price, Schildkraut wrote.
Dish Network and T-Mobile each have a bit more than 80 megahertz of wireless spectrum.