Dish rises on AT & T buyout speculation
The stock price of the Dish Network has jumped about $2 to trade at about $23.25 after Credit Suisse suggested that AT&T might try to buy the satellite company.
There has long been speculation that either of the two major phone companies, AT&T and Verizon, might buy either of the two major direct broadcast satellite (DBS) companies, EchoStar/Dish and DirecTV. AT&T and Verizon are both bundling DBS TV services, and the DBS companies also own wireless spectrum the telcos would naturally be able to use.
Dish made itself look even more enticing with news that it intends to buy DBSD North America for a fire-sale price of about $1 billion. Should that deal go through, Dish would pick up even more spectrum that could be used for wireless broadband.
Credit Suisse analyst Jonathan Chaplin set off the rise in Dish's stock when he recently wrote that AT&T might make a play for Dish. For the last six months, Dish stock had been oscillating between about $18 and $21.50.