Media business is slowly taken over by the merger frenzy, with many companies putting together their strengths and budgets to become the united powers of the business field they’re into.
T-Mobile is now looking for a steady partner to have and to hold, for better and worse, till capital economy do they part. Facing a continuous crisis, media and telecom companies are looking for alternatives to make their business keep on going and it seems that they can only do that with powers combined.
This is where the merger idea takes over and offers a better perspective for the future survival of T Mobile. This big piece of news involving a strong competitor in the media markets is the latest in a row of megadeals meant to reform the company’s gateway to video, broadband and mobile.
The present market value of T-Mobile raises to $31 billion and it seems that the giants fell in love and business with Dish Network, worth of nearly $35 billion. Well, an unequitable balance but a good case of the stronger making the weaker better and able to go on with what it does best, namely video, broadband and mobile.
This possible marriage agreement would certainly be a multi-million dollar agreement, as Thursday the stock market value for T-Mobile was at a level of $31 billion and for Dish it reached the level of $33 billion. Of course shares jumped immediately before the press screamed about the news of a potential agreement, with Dish gaining $3.44, translated in 5% increase, reaching $74.25 per share, while T-Mobile rose $1.01, translated into 2.6%, reaching $39.34 per share. The final breakdown is still awaited, as both companies still take their time to think things through before signing an agreement.
If Dish and T-Mobile sign a partnership, this could be a new record as the strongest merger making for the global media and entertainment sector since 2000, as Thomson Reuters noted.
The mergers and acquisitions in the cable and broadband industry alone are the biggest this year, since it all began, in early 1980. So far, activity in this field has reached no less than 155.3$ billion, with companies rushing to combine and to put their forces together before the holy capitalism invites them to death, bankruptcy or unbearable economical torment.
So, with this new perspective catching shape, TV Carrier Dish Network Corp may finally have found the partner it’s been looking for, the partner that offers new perspective to consolidate, reshape and maybe improve the US media and telecom industry.
But T Mobile is not easy prey however, as Englewood Colo is still debating with the giant and tries to talk it into partnering, thus being capable to further develop a new vista for Dish and offer T-Mobile a strong financial and operational boost, with resources that Dish will proudly make available into development for T-Mobile.
The market of broadband connections and telecom communications is getting thicker but stronger, as this is not the only merger example in the field. It’s actually a general initiative that businesses resort to, to diminish competition and the costs it involves, gather together larger chunks of public and putting together their brains and visions to develop and deliver better services. And all this calls for good profits for everyone involved.
Image Source: consumerist.com
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