Shares in Dish Network spike after rumoured SoftBank interest
SoftBank's rumoured interest in merging Sprint and the Dish Network causes share price in both companies to increase
Dish Network has seen its share price spike following reports claiming SoftBank wants to merge wireless arm Sprint with the company.
Reports in the Japanese press said SoftBank wants to capitalise on the growing internet of things (IoT) industry.
The reports said that Masayoshi Son, SoftBank CEO and Sprint chairman, is looking to combine Sprint’s 2.5GHz wireless spectrum with Dish’s infrastructure to enable 5G wireless services in the US.
The news came after SoftBank was rumoured to have been in talks with cable operator Charter – reports that pushed Charter’s up by 5%. Charter released an official statement saying it had no interest in merging with the wireless company. Sprint has also been linked with a potential merger with T-Mobile US, owned by Deutsche Telekom.
With a market capital of approximately $31 billion, Dish Network may be a more manageable proposition than Charter, said analysts. Charter has a market cap of $98, more than double Sprint’s $35 billion.
Shares in both Dish and Sprint were significantly higher after the reports.