Telecom Stock Roundup: AT&T Extends Time Warner Deal Deadline, DISH And CBS Bury The Hatchet
Zacks Investment Research | Nov 30, 2017 04:06AM ET
The U.S. telecom industry remained rather subdued last week. Nevertheless, a few developments are worth taking note of.
AT&T Inc. (NYSE:T) and Time Warner Inc. (NYSE:TWX) have reportedly extended the deadline of their proposed $85.4 billion merger to Apr 22, 2018. The duration of the deal was extended in order to gain the remaining regulatory approvals required to close the merger. This is the third instance when AT&T has changed the closure date.
In a separate development, DISH Network Corp (NYSE:S) inked a multi-year program licensing deal with CBS Corp. (NYSE:CBS) , after resolving a three-day blackout. DISH Network’s customers were unable to view the Thanksgiving Day NFL match between Los Angeles Chargers and Dallas Cowboys, thanks to the blackout arising from a dispute over programming fees. The blackout affected 28 channels in 18 markets of 26 states, which are served by CBS-owned-and-operated stations.
Verizon Communications Inc. (NYSE:VZ) came up with a range of wireline and wireless offers for Thanksgiving shoppers. Verizon offered its fiber-to-the-home (FTTH) customers with a five-day promotion, starting from Thanksgiving Day on Nov 23 till Nov 27. The company also came up with an offer of custom TV and phone online for $79.99 per month to new customers who subscribe for Fios Gigabit Connection. Verizon currently carries A Zacks Rank #3 (Hold). You can see Is 5G Wireless Service the Next Big Thing in Global Telecom? )
Price Performance
The following table shows the price movement of the major telecom stocks in both the last week and last six months.
| Company | Last Week | Last 6 Months |
| VZ | 9.86% | 10.11% |
| T | 5.71% | -4.30% |
| TMUS | 3.02% | -8.81% |
| S | -2.73% | -27.74% |
| TEF | 2.00% | -9.41% |
| AMX | 2.03% | 7.65% |
| CMCSA | 2.85% | -9.09% |
| CHTR | -2.89% | -1.71% |
| DISH | 1.22% | -20.02% |
In the last five trading sessions, share price movement of most of the major telecom stocks was positive. Verizon, AT&T and T-Mobile US gained significantly in the same time frame. On the other hand, price performances of most of the major telecom stocks were negative in the last six months. Sprint and DISH Network lost substantially in the same time period while Verizon gained the most.
What’s Next in the Telecom Space?
We do not foresee any significant changes in the telecom industry or overall global economic factors that can affect the industry in the coming week. Consequently, we expect stocks to trade in line with the broader market movement.
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