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Chart in Focus: Dish Network’s Increasing M&A Activity

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Rise in M&A activity

There is a rise in M&A (merger and acquisitions) activity in the telecommunications industry with AT&T’s (T) proposed acquisition of Time Warner (TWX). Talk of a merger between Sprint (S) and T-Mobile (TMUS) also refuses to die down. T-Mobile’s management stated during the JPMorgan Technology, Media & Telecom Conference held earlier this year that it foresees significant value creation for shareholders, given the organic growth opportunities for both companies.

During its 2Q17 earnings call, Dish Network (DISH) was asked about the rise in M&A activity. The company replied that the current regulatory environment seemed favorable for a rise in M&A activity.

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Dish noted during its 2Q17 earnings call that telecommunication companies were increasingly looking at vertical integration such as AT&T’s proposed acquisition of Time Warner or a greater foray into connectivity through M&A activity. The company added that media companies were looking at expanding their content portfolio through mergers and acquisitions, similar to Discovery Communications’ (DISCA) acquisition of Scripps Networks Interactive (SNI).

History of a possible T-Mobile–Sprint deal

T-Mobile and Sprint had attempted a merger in 2014, but it failed due to regulatory hurdles. Although these two major US wireless carriers have moved on to grow their respective subscriber bases, both intend to compete with industry leaders Verizon and AT&T.

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