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Leap Wireless could be the next takeover target for T-Mobile or Dish

Published Jul 8th, 2013 9:45PM EDT
Leap Wireless Acquisition T-Mobile Dish

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In the wake of SoftBank’s acquisition of Sprint and T-Mobile’s merger with MetroPCS, analysts believe other smaller carriers will also be takeover targets. Kevin Smithen of Macquarie Capital, per Investor’s Business Daily, upgraded Leap Wireless last week to a neutral rating from underperform on speculation that T-Mobile or Dish may be looking to acquire the carrier. The analyst noted that T-Mobile’s higher share price could be appealing for a potential stock deal, adding that Leap wouldn’t settle for anything less than $10 per share. He noted that the carrier could be pressured to sell at a lower price though, because T-Mobile will be entering more of Leap’s markets in the second half of the year. Smithen thinks this could “put further pressure on Leap’s already eroding operating business.” He also believes the carrier could be on Dish’s radar following the company’s failed acquisitions of both Sprint and Clearwire.

Dan joins the BGR team as the Android Editor, covering all things relating to Google’s premiere operating system. His work has appeared on Fox News, Fox Business and Yahoo News, among other publications. When he isn’t testing the latest devices or apps, he can be found enjoying the sights and sounds of New York City.