Is T-Mobile the Top Acquisition Target Wireless Network for AT&T? Details of the Deal
It looks like T-Mobile is the top acquisition target as a wireless partner following the announcement of AT&T to takeover Time Warner Inc. with a proposed $85.4 billion budget. The deal fuelled telecoms and media sectors seeking for partners to attract mobile users and digital distribution for movie and TV show producers.
According to analysts, T-Mobile has the highest revenue growth in the third quarter of about 9.5 percent financial share. The company also has an additional 851,000 postpaid subscribers which analysts said that they have increased their target price on the number three wireless company.
The company took Verizon and AT&T's market share and New Street Research analyst Spencer Kurn said, "The takeout target over the next twelve months has got to be T-Mobile." Possible buyers are Mexican telecom company America Movil, Comcast Corp., and satellite-TV provider Dish Network Corp.
In an interview with Reuters, T-Mobile Chief Operating Officer Mike Sievert said, "Content of all kind is rapidly landing on the internet and the internet itself is rapidly transforming toward mobile,"
Sprint Corp. Formerly Sprint Together With Nextel has also received calls from bankers after AT&T's deal was announced on Saturday, Oct. 22 according to its Chief Executive Marcelo Claure. "Our strategic value to many has significantly grown," he also added.
Dish Network has been battling to earn more subscribers due to extensive competition, but it has been considered an acquisition target for Verizon or AT&T to help strengthen their wireless networks. BTIG analyst Walt Piecyk said that Dish CEO Charlie Ergen 'has been pretty realistic about the challenges in the pay-TV business' so it is more likely they would look to sell..
T-Mobile US, Inc. is the third major wireless network operator in the United States headquartered in Bellevue, Washington with 69.4 million customers as of Q3 2016. They deliver wireless and data services in the United States, Puerto Rico and the U.S. Virgin Islands.