After failing to get T-Mobile USA, DISH now wants to merge with Sprint

DISH

Dish Network Group (DISH) seems to be desperately looking for a partner. Last week, Bloomberg brought the news that DISH had approached Deutsche Telekom informally about a merger with T-Mobile USA. However, the Germans decided to go through with the deal with MetroPCS.

Today, Dish launches a counter offer for Sprint. With a cash and stock offer of USD 25.5 billion, they claim to offer a much better deal than Softbank. Apart from the financials, chairman Charlie Ergen explains on a special website, that the combination provides a much better fit.

The combination of DISH and Sprint would create a telecom and Pay TV company with over 60 million subscribers. Clearly DISH sees great synergy in this deal and is therefore willing to pay a rather big premium. The question is of course if customers do see the logic. Surely, we will see more and more streaming video on mobile devices, but consumers will have different reasons for choosing a mobile operator than for a pay TV package.