Maybe AT&T (NYSE:T) was insurmountably frustrated in its rumored attempt to buy all or part of Telefonica (NYSE:TEF),
or maybe there never was any substance to that rumor. In any case, in
lieu of the $150 billion or so that Telefonica would have cost,
AT&T's surprising announcement Friday night that it was acquiring Leap Wireless (Nasdaq:LEAP) for $4 billion seems like a much smaller step.
This is a curious deal on multiple fronts. Leap is not a particularly
strong company, and it is not as thought AT&T is badly hurting for
spectrum. Instead, this may be a case of AT&T flexing its financial
muscles to make life harder on its competition (especially T-Mobile (Nasdaq:TMUS) and Sprint (NYSE:S)) and deny this asset to other potential bidders.
Read the full article here:
http://www.investopedia.com/stock-analysis/071513/att-makes-one-small-step-leap-t-leap-s-tmus-dish.aspx
Showing posts with label Dish Network. Show all posts
Showing posts with label Dish Network. Show all posts
Monday, July 15, 2013
Friday, June 21, 2013
Investopedia: The SoftBank-Sprint-Clearwire-Dish Network Game Of Musical Chairs Seems Over
In a process that has taken eight months now, it looks like SoftBank is going to succeed in its attempt to acquire Sprint (NYSE:S), and that Sprint is going to succeed in its attempt to acquire the remainder of Clearwire (Nasdaq: CLWR). The fly in both ointments, Dish Networks (Nasdaq:DISH)
has apparently abandoned its efforts to acquire Sprint, and likewise
appears to be unwilling to try to once again top Sprint's bid for
Clearwire.
This all probably brings this particular chapter to a close, but those who think the story in U.S. wireless, broadband, and telecom M&A is over don't know the nature of the parties involved.
Please read more here:
http://www.investopedia.com/stock-analysis/062113/softbanksprintclearwiredish-network-game-musical-chairs-seems-over-s-clwr-dish-dtv.aspx
This all probably brings this particular chapter to a close, but those who think the story in U.S. wireless, broadband, and telecom M&A is over don't know the nature of the parties involved.
Please read more here:
http://www.investopedia.com/stock-analysis/062113/softbanksprintclearwiredish-network-game-musical-chairs-seems-over-s-clwr-dish-dtv.aspx
Tuesday, April 16, 2013
Investopedia: DISH Network Makes Another Bid For Mobile
It's hard not to give some credit to DISH Network’s (Nasdaq:DISH)
leadership for realizing that they've taken the satellite TV concept
about as far as they can. Instead, the company has been acknowledging
(for some time now) that the company needed a pretty significant
strategic transformation- one that would allow the company to leverage
its wireless spectrum and compete more directly in the growing mobile
broadband market.
To that end, Monday's bid for Sprint Nextel (NYSE:S) is bold, but not entirely surprising. In fact, I suggested a few months ago that DISH's bid for Clearwire (Nasdaq:CLWR) could be as much about forcing Sprint to the table as any particular desire to own Clearwire. Now the question is whether or not Sprint's board welcomes the overture, and whether Sprint's other bidder, Japan's Softbank, decides to up the ante.
Please continue reading here:
http://www.investopedia.com/stock-analysis/041613/dish-network-makes-another-bid-mobile-dish-s-clwr-vz-vod-t-dtv.aspx
To that end, Monday's bid for Sprint Nextel (NYSE:S) is bold, but not entirely surprising. In fact, I suggested a few months ago that DISH's bid for Clearwire (Nasdaq:CLWR) could be as much about forcing Sprint to the table as any particular desire to own Clearwire. Now the question is whether or not Sprint's board welcomes the overture, and whether Sprint's other bidder, Japan's Softbank, decides to up the ante.
Please continue reading here:
http://www.investopedia.com/stock-analysis/041613/dish-network-makes-another-bid-mobile-dish-s-clwr-vz-vod-t-dtv.aspx
Tuesday, January 15, 2013
Investopedia: Dish Network May Not Be Cheap, But It'll Be Interesting
Like DIRECTV (Nasdaq:DTV), Dish Network (Nasdaq:DISH) must face the difficult reality that pay TV is not only a more competitive market with the entry of AT&T (NYSE:T) and Verizon Wireless (NYSE:VZ). It also must compete with on-demand options offered by a host of services like Hulu and Netflix (Nasdaq:NFLX).
Although the company doesn't look like a tremendous value today, it has
a shrewd and savvy management team that could make things interesting.
Tough Times in Pay TV
For all of Dish Network's potential strategic options (more on this in a moment), the company's core satellite pay TV business has serious challenges. While Dish Network has a solid low-cost platform and offers products such as "Hopper" to its customers, the company has nevertheless been losing subs.
Please read more here:
http://www.investopedia.com/
Tough Times in Pay TV
For all of Dish Network's potential strategic options (more on this in a moment), the company's core satellite pay TV business has serious challenges. While Dish Network has a solid low-cost platform and offers products such as "Hopper" to its customers, the company has nevertheless been losing subs.
Please read more here:
http://www.investopedia.com/
Monday, December 17, 2012
Investopedia: Will A Sub-$3 Bid Get The Deal Done For Sprint?
When word came out last week that Sprint (NYSE:S) had approached Clearwire (Nasdaq:CLWR)
with a $2.90 per share cash bid, the common reaction was that Sprint
would have to do better. Well, Sprint has done better, and the Clearwire
board has unanimously agreed, but I suspect that an extra 7 cents per
share is not going to thrill Clearwire's investors.
Please read more here:
http://www.investopedia.com/
Please read more here:
http://www.investopedia.com/
Friday, December 14, 2012
Investopedia: The Long Awaited Sprint-Clearwire Deal Is Closer Than Ever
Given large ongoing losses and sizable funding needs, most investors have considered it a given that Clearwire (Nasdaq:CLWR) will be acquired. With its approximate 50.5% ownership stake, meaningful high-end spectrum needs and a recent influx of capital from Japan's Softbank, Sprint (NYSE:S)
was seen as the most likely candidate. Now it seems like Sprint is
finally making its move, but the market reaction and relative valuation
suggest Sprint may have some work left to do.
Please continue reading here:
http://www.investopedia.com/
Please continue reading here:
http://www.investopedia.com/
Tuesday, December 4, 2012
Investopedia: Should Investors Direct Their Portfolio Toward DIRECTV?
Investors
with a few gray hairs may remember when DIRECTV
(Nasdaq:DTV)
was a controversial stock, with plenty of doubters as to whether this
company's satellite-based pay TV approach could ever make hay against
likes of Comcast
(Nasdaq:CMCSA).
That debate is long over, and the company has proven that it can
generate pretty significant amounts of cash
flow. That doesn't mean that the stock still doesn't offer some
controversy, though, with the debates now shifted as to whether the
company can withstand the evolving competition of the pay TV market
in the United States and continue to grow in Latin America.
Please continue here:
http://www.investopedia.com/
Wednesday, December 21, 2011
Investopedia: AT&T's Bold Bid For T-Mobile Ends In Failure
Maybe there's some truth to the aphorism "nothing ventured, nothing gained", but AT&T (NYSE:T) has come up snake-eyes on its latest roll of the dice. In what had become not much of a surprise at all, AT&T announced Monday evening that it was abandoning its bid to acquire Deutsche Telekom AG's (OTCBB:DTEGY) U.S. operator T-Mobile because of what increasingly looked like insurmountable regulatory objections.
The News
AT&T is abandoning its bid to combine with T-Mobile and become an even larger player in the U.S. mobile services market. This outcome is not all that surprising. Apart from the howls of self-interested parties like Sprint (NYSE:S), ample regulatory objections and blockades were raised to this deal. There's no doubt that it would have represented considerable consolidation (blending the No.2 and No.4 providers), though T-Mobile's position as something of a weak sister in the industry may have led AT&T to believe it could get the deal done. (For related reading, see How To Pick The Best Telecom Stocks.)
Read the full piece here:
http://stocks.investopedia.
The News
AT&T is abandoning its bid to combine with T-Mobile and become an even larger player in the U.S. mobile services market. This outcome is not all that surprising. Apart from the howls of self-interested parties like Sprint (NYSE:S), ample regulatory objections and blockades were raised to this deal. There's no doubt that it would have represented considerable consolidation (blending the No.2 and No.4 providers), though T-Mobile's position as something of a weak sister in the industry may have led AT&T to believe it could get the deal done. (For related reading, see How To Pick The Best Telecom Stocks.)
Read the full piece here:
http://stocks.investopedia.
Thursday, October 13, 2011
Investopedia: Netflix Beats A Hasty Retreat
Even though one of the best lessons from Southwest Airlines (NYSE:LUV) founder Herb Kelleher is that the customer is not always right, the reality is that sometimes you still have to give them what they want. Stubbornly sticking with New Coke would have eventually done major harm to Coca-Cola (NYSE:KO), and Netflix (Nasdaq:NFLX) management seems anxious to ensure that Qwikster doesn't become their New Coke or their Waterloo.
So, for now at least, forget all about "creative destruction." Qwikster is dead. (For more see, Netflix And Creative Destruction.)
Turning the Ship
Netflix customers do not necessarily agree on much - there are huge differences in usage patterns, interesting trends in viewing preferences, and all manner of price sensitivities. But on this occasion they seemed to come to a nearly-universal conclusion - they didn't like Qwikster and they had no particular interest in having to navigate two different websites to continue using what had been a simple and seamless product.
Read the full piece here:
http://stocks.investopedia.
So, for now at least, forget all about "creative destruction." Qwikster is dead. (For more see, Netflix And Creative Destruction.)
Turning the Ship
Netflix customers do not necessarily agree on much - there are huge differences in usage patterns, interesting trends in viewing preferences, and all manner of price sensitivities. But on this occasion they seemed to come to a nearly-universal conclusion - they didn't like Qwikster and they had no particular interest in having to navigate two different websites to continue using what had been a simple and seamless product.
Read the full piece here:
http://stocks.investopedia.
Wednesday, September 21, 2011
Investopedia: Netflix And Creative Destruction
Few things are easier in business than sticking with what has always worked before. Unfortunately, that is often an open invitation to hungry new competitors to come in, eat your lunch, take your customers and leave you with the bill. To that end, while investors (not to mention customers) may be confused, frustrated or angry with Netflix's (Nasdaq:NFLX) latest moves, they may be exactly what the company has to do to remain a leader in the fast-developing media content business.
Old Wine in New Bottles
Netflix's latest move is to separate its traditional DVD-by-mail business from its newer streaming media business. Management is renaming the DVD business "Qwikster," adding video game rental to the service, and operating it as a wholly-owned subsidiary with its own management and customer service infrastructure.
The Netflix name will now be solely for the streaming business, and the two companies will run quite separately. There will be different websites and customers will see two charges on their credit card statement if they sign up for or keep both services.
Click the link for the full article:
http://stocks.investopedia.
Old Wine in New Bottles
Netflix's latest move is to separate its traditional DVD-by-mail business from its newer streaming media business. Management is renaming the DVD business "Qwikster," adding video game rental to the service, and operating it as a wholly-owned subsidiary with its own management and customer service infrastructure.
The Netflix name will now be solely for the streaming business, and the two companies will run quite separately. There will be different websites and customers will see two charges on their credit card statement if they sign up for or keep both services.
Click the link for the full article:
http://stocks.investopedia.
Tuesday, August 30, 2011
Investopedia: Industry At A Glance - Pay TV
On the surface it may not seem like there would be much growth left in the U.S. pay TV market. Penetration rates are already north of 90% and most Americans consider cable (or satellite) TV service to be just as much a necessity as electricity or gas. Moreover, with the decline of dial-up, pay TV carriers also provide the entryway to Internet access for most people in this country.
And yet, that doesn't mean that there isn't growth potential or vibrant competition. Satellite providers, cable TV providers and phone companies are stepping up their battle to offer more or less the same services to the same customer base. What's more, alternate online options are reducing some of the distribution power of this sector, while more and more distributors also see themselves as content providers. Oh, and there's this tech company called Apple (Nasdaq:AAPL) that may have some ideas of its own about how TV service should look in the future.
Read the full article by clicking below:
http://stocks.investopedia.
And yet, that doesn't mean that there isn't growth potential or vibrant competition. Satellite providers, cable TV providers and phone companies are stepping up their battle to offer more or less the same services to the same customer base. What's more, alternate online options are reducing some of the distribution power of this sector, while more and more distributors also see themselves as content providers. Oh, and there's this tech company called Apple (Nasdaq:AAPL) that may have some ideas of its own about how TV service should look in the future.
Read the full article by clicking below:
http://stocks.investopedia.
Friday, May 27, 2011
Investopedia: TiVo's Battle Only Beginning
It has been a multi-year roller coaster ride for TiVo (Nasdaq:TIVO) bulls, and yet plenty of volatility and uncertainty remains. Not only does the company have several significant IP lawsuits still in progress, but the company is a long way from establishing that it has a business model capable of producing attractive free cash flow in the years to come.
On the other hand, the company has won legal validation for its IP and signed up several major TV partners. With valuable technology and patents, and several large tech companies likely coveting the in-home reach and potential of this technology, TiVo could yet attract some interest from a bidder. As I said, the roller coaster ride isn't over yet.
First Quarter Results Include a Major Win and Significant Concerns
There is no question that the company's settlement with DISH Network (Nasdaq:DISH) was a dominating factor this quarter. After another legal setback, DISH chose to take a settlement with TiVo - agreeing to pay $500 million in damages, with $300 million upfront and $200 million coming between 2012 and 2017. With that settlement, TiVo was profitable on an accounting basis.
To read the full article, please follow the link:
http://stocks.investopedia.
On the other hand, the company has won legal validation for its IP and signed up several major TV partners. With valuable technology and patents, and several large tech companies likely coveting the in-home reach and potential of this technology, TiVo could yet attract some interest from a bidder. As I said, the roller coaster ride isn't over yet.
First Quarter Results Include a Major Win and Significant Concerns
There is no question that the company's settlement with DISH Network (Nasdaq:DISH) was a dominating factor this quarter. After another legal setback, DISH chose to take a settlement with TiVo - agreeing to pay $500 million in damages, with $300 million upfront and $200 million coming between 2012 and 2017. With that settlement, TiVo was profitable on an accounting basis.
To read the full article, please follow the link:
http://stocks.investopedia.
Tuesday, March 22, 2011
Investopedia: AT&T Gives Deutsche Telekom Its Out
German telecom giant Deutsche Telekom (OTC:DTEGY) has been trying for years to figure out a strategy for its U.S. business T-Mobile. That dilemma may be at an end now, as the company has agreed to sell T-Mobile to American rival AT&T (NYSE:T) in a $39 billion deal that combines cash and stock.
Terms of the Deal
In a surprising move, AT&T announced that the two companies had reached an agreement whereby AT&T will pay $25 billion in cash and $14 billion in stock for Deutsche Telekom's T-Mobile subsidiary, the #4 player in the U.S. wireless space with roughly 34 million total subscribers. Interestingly, AT&T will not be taking on any of the debt associated with T-Mobile.
At the stated price, AT&T is paying about 7x T-Mobile's trailing EBITDA - a premium to Sprint Nextel (NYSE:S) and Clearwire (Nasdaq:CLWR) (which has negative EBITDA), but in line with MetroPCS (NYSE:PCS) and Leap Wireless (Nasdaq:LEAP). (For related reading, see A Clear Look At EBITDA,)
The Logic of the Deal
It will probably take a year or more for this deal to close, but if it does AT&T will become the #1 wireless provider in the United States. Not only are those subs valuable to AT&T, but the deal helps addressed some of the company's spectrum needs as well. The deal will also give AT&T certain operating synergies, not only be eliminating duplicate functions and personnel, but also giving the company greater bargaining power with vendors.
Please follow this link for the full piece:
http://stocks.investopedia.
Terms of the Deal
In a surprising move, AT&T announced that the two companies had reached an agreement whereby AT&T will pay $25 billion in cash and $14 billion in stock for Deutsche Telekom's T-Mobile subsidiary, the #4 player in the U.S. wireless space with roughly 34 million total subscribers. Interestingly, AT&T will not be taking on any of the debt associated with T-Mobile.
At the stated price, AT&T is paying about 7x T-Mobile's trailing EBITDA - a premium to Sprint Nextel (NYSE:S) and Clearwire (Nasdaq:CLWR) (which has negative EBITDA), but in line with MetroPCS (NYSE:PCS) and Leap Wireless (Nasdaq:LEAP). (For related reading, see A Clear Look At EBITDA,)
The Logic of the Deal
It will probably take a year or more for this deal to close, but if it does AT&T will become the #1 wireless provider in the United States. Not only are those subs valuable to AT&T, but the deal helps addressed some of the company's spectrum needs as well. The deal will also give AT&T certain operating synergies, not only be eliminating duplicate functions and personnel, but also giving the company greater bargaining power with vendors.
Please follow this link for the full piece:
http://stocks.investopedia.
Thursday, October 7, 2010
Viva La TV!
While debates and arguments about immigration often dominate any conversation about the growing influence of Spanish-speakers in the United States, the reality is that the Spanish-speaking market is major growth market today. With that in mind, Grupo Televisa's (NYSE:TV) recent deal with Univision looks like a classic win-win deal for both parties.
The Deal
On Tuesday, Televisa announced a $1.2 billion deal with Univision that will further solidify the long-term relationship between these often fractious partners. With the deal, Televisa will get a 5% equity stake in Univision and debentures that can be converted into a further 30% piece of Univision. This is not the first time that Televisa has had an ownership stake in the largest distributor of its programming - prior to Univision's acquisition by private equity, Televisa was a minority investor.
Click below to continue on:
http://stocks.investopedia.com/stock-analysis/2010/Viva-La-TV-TV-CBS-TWX-NIHD-DISH1007.aspx
The Deal
On Tuesday, Televisa announced a $1.2 billion deal with Univision that will further solidify the long-term relationship between these often fractious partners. With the deal, Televisa will get a 5% equity stake in Univision and debentures that can be converted into a further 30% piece of Univision. This is not the first time that Televisa has had an ownership stake in the largest distributor of its programming - prior to Univision's acquisition by private equity, Televisa was a minority investor.
Click below to continue on:
http://stocks.investopedia.com/stock-analysis/2010/Viva-La-TV-TV-CBS-TWX-NIHD-DISH1007.aspx
Thursday, May 20, 2010
TiVo Gets Scrambled
Do not count your chickens (or lawsuit settlements) before they are hatched. That would seem to be the lesson to TiVo (Nasdaq:TIVO) shareholders from a surprising court decision on Friday, May 11. Due to a federal appellate court's decision to re-review the company's case against Dish Network (Nasdaq:DISH), the stock lost almost half of its value in a single day.
What a Long Strange Trip It Has BeenTiVo is largely credited for the development of digital video recorders (DVR), one of the more popular add-ons for most dedicated TV-watchers. While TiVo sells its services directly, they also partner with companies like DIRECTV (NYSE:DTV) and Comcast (Nasdaq:CMSCA) to sell these services.
For the rest of the article:
http://stocks.investopedia.com/stock-analysis/2010/TiVo-Gets-Scrambled-TIVO-DISH-DTV-CMCSA-VZ-T0520.aspx
What a Long Strange Trip It Has BeenTiVo is largely credited for the development of digital video recorders (DVR), one of the more popular add-ons for most dedicated TV-watchers. While TiVo sells its services directly, they also partner with companies like DIRECTV (NYSE:DTV) and Comcast (Nasdaq:CMSCA) to sell these services.
For the rest of the article:
http://stocks.investopedia.com/stock-analysis/2010/TiVo-Gets-Scrambled-TIVO-DISH-DTV-CMCSA-VZ-T0520.aspx
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