The US wireless industry has become structurally more competitive in recent years, making consumer harm from a merger unlikely. But a merger could meaningfully benefit consumers by increasing competition in the pay TV and broadband internet markets.

We believe it is time for investors to take profits in MLCO – we are closing out our bullish call from late February and are moving to a neutral stance. While we expect the company to post strong results, future outperformance is far less clear.