The Zacks Analyst Blog Highlights: T-Mobile, AT&T, Sprint, Comcast and DISH Network
CHICAGO, Nov. 24, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the T-Mobile US Inc. (NYSE:TMUS-Free Report), AT&T Inc. (NYSE:T-Free Report), Sprint Corp. (NYSE:S-Free Report), Comcast Corp. (Nasdaq:CMCSA-Free Report) and DISH Network Corp. (Nasdaq:DISH-Free Report).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Friday's Analyst Blog:
Are Telecom/TV Operators Still Interested in T-Mobile?
According to a recent report by Bloomberg, German telecom carrier Deutsche Telekom AG announced that T-Mobile US Inc. (NYSE:TMUS-Free Report) still remains an attractive takeover target for several telecom, cable TV and satellite TV operators. Deutsche Telekom is the parent company of T-Mobile US, the fourth largest telecom operator in the U.S.
We believe that T-Mobile US is a lucrative acquisition target amid the ongoing consolidation trend within the U.S. telecom industry. Since 2011, Deutsche Telekom has been exploring several options to divest its U.S. operations.
AT&T Inc. (NYSE:T-Free Report) placed the first bid of $39 billion for gaining full control of T-Mobile U.S. After a close scrutiny, the Federal Communications Commission (FCC) thwarted AT&T's attempt to acquire T-Mobile U.S., stating that it seeks a minimum of four national carriers in order to maintain competitiveness.
In Jul 2014, Sprint Corp. (NYSE:S-Free Report) offered $16 billion for a little over 50% stake in T-Mobile U.S. Again the deal was thoroughly evaluated by both the FCC and the U.S. Department of Justice. However, the regulators decided on the same and Sprint consequently opted out from the race.
Last month, French telecom startup Iliad SA offered a new bid for T-Mobile US, but Deutsche Telekom immediately rejected that offer on ground of inadequacy.
Bloomberg reported that Deutsche Telekom's Chief Executive Officer Timotheus Hoettges has named Comcast Corp. (Nasdaq:CMCSA-Free Report), America Movil SAB and DISH Network Corp. (Nasdaq:DISH-Free Report) as some of the potential new suitors for T-Mobile US. However, none of these companies have confirmed the news.
Notably, largest cable MSO (multi service operator) Comcast is vying to acquire its competitor Time Warner Cable. The proposed $45.2 billion merger deal is currently undergoing strict regulatory scrutiny. If the deal finally gets the regulatory approval, we do not expect Comcast to bid for T-Mobile US as regulators may object to such high levels of market power concentration.
On the other hand, America Movil has the scope to bid for T-Mobile US, though the company is facing severe regulatory control in its domestic Mexican market. America Movil first needs to restructure its operations in that country to comply with new regulatory norms.
Meanwhile, DISH, the second largest satellite TV operator, may seriously consider for T-Mobile US. In Sep 2014, Bloomberg reported that DISH is in talks with Deutsche Telekom, over the merger and may pursue the deal after the completion of the AWS-3 spectrum auction. Notably, both companies are currently bidding in the ongoing AWS-3 spectrum auction.
According to some industry rumors, the AWS-3 auction may pave way for a merger between the nation's fourth largest telecom operator T-Mobile US and second largest satellite TV operator. DISH currently has 55MHz of spectrum of which 45 MHz are in the AWS-4 (2000/2200 MHz) band while the remaining 10 MHz fall in the H-band. AWS-3 spectrum ownership will enable the company to interoperate LTE service AWS-1 (1700/2100 MHz) spectrum band.
On the other hand, T-Mobile US has started the deployment of LTE service using the AWS-1 spectrum. Winning some AWS-3 spectrum will give the company more bandwidth to expand its LTE network.
Finally, if T-Mobile US can merge with DISH, the joint entity will boast a significant bandwidth portfolio on all AWS-1, 3, 4 as well as H-band spectrums to deploy high quality LTE services like extremely fast video delivery and enhanced application download and upload speeds.
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978. The later formation of the Zacks Rank, a proprietary stock picking system; continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros.
Get the full Report on TMUS - FREE
Get the full Report on T - FREE
Get the full Report on S - FREE
Get the full Report on CMCSA - FREE
Get the full Report on DISH - FREE
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts
Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Logo - http://photos.prnewswire.com/prnh/20101027/ZIRLOGO
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/the-zacks-analyst-blog-highlights-t-mobile-att-sprint-comcast-and-dish-network-300000184.html
SOURCE Zacks Investment Research, Inc.
Share this article