AT&T And Dish Network Stocks Gain On DirecTV Merger Speculation
Rumblings are getting louder about a potential merger of leading satellite TV distributors DirecTV and Dish, with stocks in both services’ parent companies gaining ground in Friday trading.
Like in the UK, traditional pay tv companies in the States are haemorrhaging subscribers to streaming services like Netflix and these satellite companies are no different.
Since AT&T bought Timer Warner last year, is has a terrifying amount of debt on its books, so if it were able to sell DirecTV to Dish, that would at least improve their balance sheet a bit.
There is a important side story here which is the proposed merger of T-Mobile and Sprint, America's 3rd and 4th biggest mobile companies, that I mentioned in this post last year.
T-Mobile's boss has been heavily critical of Dish for a long time because Dish has been hoarding tons of mobile spectrum which it has not been using and many pundits have speculated that Dish wants to buy Sprint and create a massive 5G network to rival the likes of Verizon and in effect knock out T-Mobile If Dish also owns DirecTV, it has the potential to become the dominant force in wireless in the future.