Events: Dish Network Pro Forma VZ-DISH June 2015

Dish Network

Events: Pro Forma VZ-DISH

June 5, 2015


Early this morning I posited that VZ is likely makes a run for DISH, as I believe it not only needs DISH’s capacity, but would garner enormous benefit from DISH’s video infrastructure. A question arose on Twitter what a VZ DISH purchase might look like, and how much stock Ergen would be willing to accept. Let’s take a look.

In the DISH SOTP posted this morning, I estimated DISH is worth approximately $208 on a standalone basis. Assuming a $47 VZ stock price, 3X target leverage, 15% synergies and a 6% consolidated interest rate, I estimate VZ could pay $106 in cash & $102 in stock and still generate $3.77 of pro forma 2016 EPS. At $47, VZ would trade at a pro forma 2016 PE of 12.5X, with a much improved capacity/growth profile. My guess is Ergen would take that deal…

VZ-DISH Analysis June 2015


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