Dish Network (DISH) Stock Gains, in Talks With Banks to Fund T-Mobile Bid

NEW YORK (TheStreet) -- Dish Network (DISH) shares are up 1.59% to $73.95 in pre-market trading on Friday following reports that the pay television company is in talks with banks concerning funding for a bid for wireless carrier T-Mobile (TMUS), according to the Wall Street Journal.

The bid would be partially paid for with $15 billion in cash, with the company considering borrowing between $10 billion and $15 billion, with the remainder of the offer to be paid for in stock.

Terms of a potential bid for the company have not been released but T-Mobile has a market cap of $31 billion while Dish Network is valued at about $35 billion.

The deal would also give T-Mobile's parent company Deutsche Telekom (DTEGY) a large minority stake in the combined company, according to Journal sources.

A merger involving about $14 billion in cash and the rest in stock would leave Deutsche Telekom with a 27% stake in the new company according to an analysis done for the Journal by Moody's Investors Service.

Dish's bid for T-Mobile is not guaranteed and the two companies are still currently in negotiations.

TheStreet Ratings team rates DISH NETWORK CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate DISH NETWORK CORP (DISH) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its compelling growth in net income, revenue growth, good cash flow from operations, solid stock price performance and impressive record of earnings per share growth. We feel its strengths outweigh the fact that the company shows low profit margins."

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