Boston, MA 05/12/2014 (wallstreetpr) – While the market is abuzz with the proposed acquisition of DIRECTV (NASDAQ:DTV) by AT&T Inc. (NYSE:T), Dish Network Corp. (NASDAQ:DISH) has decided to pursue deal with T-Mobile US Inc (NYSE:TMUS) instead of DirecTV. Dish’s Chairman Charlie Ergen said that he does not plan to start a deal war and would rather prefer to acquire T-Mobile if its merger plan with Sprint Cop (S) fall apart.
Too Expensive To Pursue
During the conference call, Ergen said that though DirecTV is extremely attractive, but it is too expensive to be taken. It is to be noted that the shares of DirecTV have been on a rally and ended over 3% on Friday, since the time news broke about its possible acquisition by AT&T. Ergen made is clear that he believes in his wait and watch strategy to see how things unfold with the passage of time. He said that the company is not in a position to outbid Sprint or AT&T for T-Mobile and DirecTV respectively.
Option Open If On Sale
Ergen said that if Sprint Corporation (NYSE:S) and T-Mobile US Inc (NYSE:TMUS) deal does not get regulatory nod then T-Mobile would find more strategic interest to partner with Dish Network Corp. (NASDAQ:DISH). According to a Bloomberg report, Sprint is expected to place a formal bid for T-Mobile in between June or July. The CEO of Deutsche Telekom AG, which has an ownership in T-Mobile, is less optimistic if the T-Mobile-Sprint deal would get regulator’s clearance in the near term. In this case, if Dish is able to takeover T-Mobile, then it would be able to get an access to a rapid growing market beyond its own satellite TV business. Dish had last approached Sprint in 2013, but was outbid by SoftBank Corp.
In March, Dish Network Corp. (NASDAQ:DISH) had contacted DirecTV for a possible merger, which is now in negotiations with AT&T. Ergen commented that the merger of AT&T Inc. (NYSE:T) and DirecTV would imply more of a sense strategically than financially, which will leave Dish in a good position. However, he does not deny to pounce on DirecTV if it is up for sale again.
