Two sources hinted Tuesday that an AT&T move on EchoStar's DISH Network may be more than just the latest round of rumors. Of course, the news came after EchoStar unveiled that it had plans to spin its company into two separate operations a couple weeks ago.
First, in a research note to investors, Citigroup's Jason Bazinet said there is a 65 percent chance that the telco giant would buy EchoStar's DBS service within the next 12 months. The analyst also said EchoStar's separation of its technology businesses and its DBS service has "logical linkages" to merger and acquisition activity.
"Owning (DISH Network) can complement AT&T's fiber deployment by broadening the footprint, enhancing high-def video capabilities and improving on-demand services," Bazinet said.
Another telling sign that there may be more to the rumors was a report on TheStreet.com that said AT&T has hired Goldman Sachs to review a possible EchoStar acquisition. The investment site reported that an unnamed source said the deal could be put together in the next three to six weeks.
Bazinet maintained a "buy" rating on both AT&T and DISH in light of the developments. AT&T closed Tuesday trading down 1.61 percent at $35.37 while EchoStar closed up 4.16 percent at $51.08.