A deal could be announced by the end of this week.
What you need to know
- Dish Network is reportedly close to finalizing a $6 billion deal with T-Mobile and Sprint to purchase assets that the two companies are divesting.
- The deal could be announced as soon as this week, provided it does not fall through.
- Dish has already spent $20 billion in purchasing wireless spectrum and must build its network by March 2020 to retain them.
A new report from Bloomberg claims Dish Network is currently negotiating a deal with T-Mobile and Sprint to purchase assets that the two carriers are required to sell in order to receive approval for their merger from the Justice Department.
As per the report, Dish Network is looking at purchasing assets including wireless spectrum as well as Boost Mobile for $6 billion. However, people familiar with the matter suggest the deal is yet to be finalized and there are some chances that it may fall through. Apart from Dish Network, the two companies had reportedly held talks with Charter and Altice as well for selling the assets. In case the deal with Dish Network goes through, an official announcement is likely to be made by the end of this week. The final approval for the merger may also arrive as soon as this week.
The Justice Department wants T-Mobile and Sprint to sell their assets so that a new wireless carrier can be created. Earlier this month, as many as ten states filed a lawsuit that aims to block T-Mobile’s merger with Sprint. They believe that a successful merger of the two companies would not just result in reduced competition but also result in an increase in rates for consumers.
T-Mobile and Sprint argue that they can compete against Verizon and AT&T only by merging together, since the two industry leaders have a much higher subscriber base. Once the merger is completed, T-Mobile and Sprint will have a combined subscriber base of more than 130 million. The $26 billion merger deal will also allow the two carriers to accelerate 5G rollout in the U.S.