Dish Network is in talks to pay at least $6 billion for assets that T-Mobile US and Sprint, including wireless spectrum and Sprint’s Boost Mobile brand, according a report by Bloomberg News. The deal, which could be announced this week, is being struck to win regulatory approval for their merger.
Last week, Reuters reported that private equity group Apollo Global Management was in talks with Dish to finance a bid for the assets.
The press has been rife with predictions on what deal would gain the Department of Justice’s blessing of the T-Mobile/Sprint merger, but pleasing the states, which have filed their own lawsuit, may be another matter, according to Blair Levin, New Street Research.
“We keep hearing from investors a belief that any deal with DISH that has the blessing of the DOJ and FCC will definitely either cause the states to withdraw or cause them to lose. We think that is wrong,” Levin wrote. “Any deal with DISH weakens the states’ case but as noted below, the states have alleged a number of harms that may not be mitigated sufficiently by the deal.”