Satellite TV provider Dish Network’s stock has dropped more than 25% since mid June, when it started having problems with AT&T (T), one of its resellers (and the biggest U.S. phone company). Specifically, AT&T yanked a convertible note, and then a few weeks later, decided to terminate its five-year-old deal to resell Dish satellite TV at the end of 2008. But now AT&T has extended its deal a month, through January 31, 2009, according to a Dish Network SEC filing.
What does this mean? Is AT&T not dumping Dish for DirecTV after all?
One guess, by Goldman’s Ingrid Chung: Probably more time for Dish and AT&T to negotiate, “which seems to indicate to us that DISH has a better chance of keeping the contract with AT&T than previously believed.” She adds: While the terms of the extension are probably not favourable to Dish, they’re better than nothing.
Dish stock is up 0.9% to $23.84 this morning.
Business Insider Emails & Alerts
Site highlights each day to your inbox.