Credit Concerns With DISH - Sprint Nextel Deal

A DISH Network (DISH-$39.26) – Sprint Nextel (S-$7.09) deal offers multiple venues for revenue growth. DISH could offer subscribers triple-play services (high-speed internet, phone, and video) by merging its own satellite network with Sprint’s wireless network. In terms of cross-selling – excluding overlap – there is the equivalent of 17 million Sprint households that could be targeted for DISH Pay-TV services and approximately 14 million current DISH households that could potentially add about 35 million new mobile users to Sprint’s subscriber base.

Management opines that potential revenue and cost synergies could reach $37 billion, of which $11 billion would come from the spend side (alignment of sales & distribution channels and reduction of similar operations, such as call centers or billing and collections services).

Fitch Credit believes, however, that the deal is fraught with substantial execution and integration risks.

Continue Reading at YCharts: Dish Rally onSprint Deal: We Dish the Dirt

Editor David J Phillips does not hold a financial interest in any stocks mentioned in this article. The 10Q Detective has a Full Disclosure Policy.