Amazon.com, Inc. is considering a possible acquisition of DISH Network Corp , Benzinga reported, citing a person familiar with the matter.
The person told the publication that the two companies are “considering extending their partnership or potentially merging sometime in the next few months.”
The person, whose identity remains anonymous, said that the online retailer is planning to use DISH’s 5G spectrum to support its delivery drones.
In addition, Amazon is exploring integrating its Prime Video for DISH-facilitated streaming, Benzinga reported.
DISH Network has spent $21 billion to acquire wireless spectrum but is seeking customers. The company has touted the spectrum as a good fit for next-generation 5G wireless services. Dish has been unable to forge a deal with wireless companies such as T-Mobile US (TMUS) or Sprint (S). Experts say that 5G services could be used to for self-driving cars as well as drones projects.
Amazon is betting on drone technology to deliver packages up to five pounds to customers within 30 minutes. Last year, the online retailer completed the first delivery by drone, dropping a package of popcorn and a Fire TV video-streaming device several miles to a two-story farmhouse in Cambridge, U.K. The e-commerce giant is also planning to build a floating warehouses to house small items as well as an aerial package delivery system that includes a parachute to enable the packages to be dropped from drones.
That’s why, Amazon.com, Inc. is taking interest in DISH Network’s wireless spectrum.
DISH Network and Amazon Wireless Network Deal
Last month, Satellite Business News reported that DISH Network Corp and Amazon are in talks about a potential wireless network deal.
According to the publication, Amazon could become “a foundational customer of the wireless network that Dish Network plans to launch within the next few years.
“As such, it is possible a Dish Network-Amazon deal might not be consummated. If it is, it could give Dish Network’s much talked about — and some would argue, struggling — wireless spectrum fortunes a huge boost,” Satellite Business News reported.
The e-commerce giant is supposed to be interested in launching an online video service which includes live channels. Recently, the online retailer announced a deal with the NFL to distribute Thursday Night Football games to its best customers on-line next season.
Citigroup analyst Michael Rollins believes that a 5G wireless services deal between Amazon and DISH Network “may seem unusual,” but Amazon Web Services could use a wireless network as part of its Internet of Things strategy.
Meanwhile, shares of Amazon.com, Inc. closed up 0.02% on Thursday. The stock is up more than 34% so far this year.