Bigger is better these days when it comes to media and telecommunications companies, but gigantic may be best.
Shares of T-Mobile US (TMUS) were up $1.66, or 4.3 percent, to $39.99 early Thursday afternoon after The Wall Street Journal reported that the wireless provider is in talks to be acquired by satellite TV company Dish Network (DISH), whose stock price also rose.
Although no deal terms have surfaced, the deal would be a large one, given T-Mobile's $31 billion market capitalization. Jonathan Chaplin, an analyst with New Street Research, said T-Mobile could fetch as much as $45 a share in cash and stock, which would value the company at nearly $40 billion.
The deal looks like a good match on paper, especially as cable, phone and Internet players play musical chairs in a rush to merge amid rapid consolidation. Dish CEO and media tycoon Charlie Ergen has openly argued for years that his company needs to find a merger partner. Germany's Deutsche Telekom, which controls 66 percent of T-Mobile, has reportedly been on a similar quest.