What’s the Dish?Comments Off on What’s the Dish?
With Verizon selling off both their wireless and tower assets last week, some investors feel that a deal with Dish Network is off the table. However, Miriam Gottfried of The Wall Street Journal isn’t so sure that’s the case. Verizon announced they would use $5 billion of the after-tax proceeds from the sale to buy back shares, and devote the rest, about $6.8 billion, to pay off the debt related to its spectrum purchases in the AWS-3 auction. “To further bolster its competitive position in that business, the carrier likely still needs to buy more spectrum to bring its capacity per subscriber in line with rivals. And Dish controls one of the largest unused blocks,” Gottfried wrote. Analysts at New Street Research noted that the buybacks will offset the dilution that would have occurred as a result of the asset sale. While Verizon could find other ways to acquire spectrum, like participate in the 2016 incentive auction, Gottfried feels like the possibility of a Verizon-Dish deal is still viable.