Dish Network and DirecTV, the nation’s two largest satellite-TV companies with a combined 34 million subscribers, could be looking to merge once again. DirecTV’s share price rise a useful 4.5 per cent (and a 52-week ‘high’), and Dish rise almost 3 per cent on the rumours, and both driven forward by heavy volumes.
Shares of DirecTV and Dish which agreed to a failed merger just more than a decade ago rose the speculation. DirecTV shares closed at $54.99, up 4.5 percent, while Dish stock rose nearly 3 percent to $35.15 on heavy volume. Brazilian telecom GVT, which DirecTV reportedly had interest in acquiring, was taken off the market by parent company Vivendi.
Macquarie analyst Amy Yong wrote that, with a potential acquisition of GVT off the table, we believe the likelihood of a DirecTV-Dish merger is much more likely. She also added, ‘while a DirecTV purchase of Dish would need to clear multiple regulatory hurdles, we believe a deal would deliver near- and long-term synergies, be extremely accretive, and improve both companies’ competitive positioning.”