Cable companies line up for T-Mobile’s wireless assets
Dish Network (DISH) has emerged as a frontrunner in acquiring Boost Mobile and other wireless assets that T-Mobile (TMUS) and Sprint (S) have offered to sell to secure regulatory clearance for their $26 billion merger, according to Reuters. Boost Mobile is a prepaid wireless business owned by Sprint. T-Mobile has its own prepaid wireless business, Metro. Cable providers Comcast (CMCSA), Charter Communications (CHTR), Altice USA (ATUS), and Amazon (AMZN) have also shown interest in purchasing Sprint’s and T-Mobile’s assets.
Apollo Global providing financial backing
Bloomberg reports that Dish is in talks to pay at least $6.0 billion for Boost and other T-Mobile and Sprint wireless assets. Dish has been impacted significantly by cord cutting, with its revenue falling 9.0% year-over-year to $3.2 billion in the first quarter. The company finished the quarter with a cash reserve of $1.6 billion. Reuters reports that private equity group Apollo Global Management was willing to back Dish financially in its bid for T-Mobile’s and Sprint’s wireless assets.
Dish’s pursuit of a deal that would allow T-Mobile and Sprint to combine marks an interesting turn of events. Dish had been opposed to T-Mobile merging with Sprint from day one.