Comcast in T-Mobile US takeover talks – report – Mobile World Live

Comcast in T-Mobile US takeover talks – report

17 JUN 2015

US cable operator Comcast has emerged as T-Mobile US’ latest suitor, after reportedly holding talks with parent company Deutsche Telekom over a possible takeover.

The German operator is actively in discussions with a number of parties, according to Manager Magazin, and Comcast has emerged as a favoured option internally given its strong financial position.

Comcast recently dropped its proposed $45 billion takeover of Time Warner Cable, and would be able to launch a bid to take full control of the US’ fourth largest mobile operator, according to the publication.

Cable rival Dish Network also reportedly held talks with T-Mobile US over a possible merger earlier this month, but Comcast is reportedly viewed as the more attractive buyer by Deutsche Telekom’s management.

Cable operators across the US, including Dish and Comcast, are looking to beef up their wireless offering and add to existing network capacity.

If a merger between T-Mobile US and a cable operator goes through, it could prove to be the largest tie-up ever between the television and communications industries.

T-Mobile US, which is 66 per cent owned by Deutsche Telekom, has a market value of approximately $31.5 billion, and has been subject to takeover speculation for some time.

Sprint dropped its interest in acquiring the company last year, following regulatory opposition to the deal, which would have seen the US’ third and fourth largest players combine.

French player Iliad also launched a rival bid at the time, which was rejected for being too low.

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Kavit Majithia

Kavit joined Mobile World Live in May 2015 as Content Editor. He started his journalism career at the Press Association before joining Euromoney’s graduate scheme in April 2010. Read More >>

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