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Dish Network bids $25.5 billion for Sprint

Posted: , by Alan F.

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Dish Network bids $25.5 billion for Sprint
Charles Ergen's dream of owning a wireless carrier has just become real. Ergen's Dish Network has bid $25.5 billion for Sprint. Stockholders of the nation's third largest carrier will receive $4.76 in cash and 0.05953 DISH shares. The deal tops the current offer from Softbank to buy 70% of the carrier by 13% and works out to a total package worth roughly $6.96. based on Friday's closing prices. Sprint shares closed Friday at $6.22 and are bid at $7.16 in pre-market trading. Dish Network shares closed Friday at $37.63 and are bid at $34.01 in pre-market trading. Based on those prices, the deal would be worth $6.78 to each Sprint holder.

Ergen had been trying to purchase network supplier Clearwire, but despite offering more than Sprint for the company, the fact that Sprint already owned a majority stake in Clearwire made the task close to impossible. Now, Dish will end up with Clearwire after all, along with the rest of the nation's third largest carrier. If the deal goes through, it will allow for $11 billion in cost savings. Ergen hopes to bundle Sprint's wireless service with satellite content for television from Dish.

The ball is in Softbank's court. It can decide to raise its bid or even offer to buy the entire company although that might result in regulatory issues. On the other hand, it could decide to walk away and let Dish Network purchase Sprint.

"The DISH proposal clearly presents Sprint shareholders with a superior alternative to the pending SoftBank proposal. Sprint shareholders will benefit from a higher price with more cash while also creating the opportunity to participate more meaningfully in a combined DISH/Sprint with a significantly-enhanced strategic position and substantial synergies that are not attainable through the pending SoftBank proposal. A transformative DISH/Sprint merger will create the only company that can offer customers a convenient, fully-integrated, nationwide bundle of in- and out-of-home video, broadband and voice services. Additionally, the combined national footprints and scale will allow DISH/Sprint to bring improved broadband services to millions of homes with inferior or no access to competitive broadband services. This unique, combined company will have a leadership position in video, data and voice and the necessary broadband spectrum to provide customers with rich content everywhere, all the time."-Charles Ergen, Chairman and CEO Dish Network

source: DISHNetwork via Engadget

Press Release

21 Comments
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posted on 15 Apr 2013, 07:23

1. wiiandds (Posts: 61; Member since: 15 Mar 2013)


As long as they still keep Sprint's subsidiary, it sounds like i good deal.

posted on 15 Apr 2013, 16:22

20. maier9900 (Posts: 272; Member since: 17 Dec 2011)


There was also an article about Dish N. bidding to buy T-mobile. They're going to buy every wireless carrier in the U.S. and call it Dish Mobile.

posted on 15 Apr 2013, 07:57 2

2. tigermcm (Posts: 759; Member since: 02 Sep 2009)


well dang I must have been sleeping under a rock or something because I thought Sprint and Softbank were done with their lil merger/buy out plan

posted on 15 Apr 2013, 08:19 2

3. DonkeySauce (Posts: 161; Member since: 03 Dec 2011)


I'll bid tree fitty.

posted on 15 Apr 2013, 08:53 2

4. palmguy (Posts: 324; Member since: 22 Mar 2011)


Three fitty one.

posted on 15 Apr 2013, 09:29 2

5. Daftama (Posts: 575; Member since: 03 Nov 2012)


Three fifty two

posted on 15 Apr 2013, 09:31 1

6. Avicktim (Posts: 22; Member since: 09 Apr 2013)


40.2 billion here

posted on 15 Apr 2013, 09:40 2

7. lovenyc8 (Posts: 164; Member since: 13 Mar 2013)


go dishnetwork anyone who buy it from the usa is cool don;t like outsiders buying USA companys.

posted on 15 Apr 2013, 13:59 1

13. a_merryman (Posts: 718; Member since: 14 Dec 2011)


So clearly you don't like Verizon or T-mobile...since nearly half of Verizon is owned by Vodafone and t-mobile is owned by Deutsche Telekom AG. Most of the large corporations are multinational organizations.....just because they're from America doesnt mean the majority of their employees are, or even that it is American owned or run.

posted on 15 Apr 2013, 14:19 1

14. lovenyc8 (Posts: 164; Member since: 13 Mar 2013)


its better when an amercian company is bought by an amercian company. because they would understand the amercian market better. plus if japan bought sprint the prices would go up because everythign in japan is expansive and they would move it the way cell phones companies in japan move and perices rules. tmobile is diffrent they are doing great and there prices are good and there plans are good, verzion on there other hand has crazy plans and greedy company the same would happen if japan bought it

posted on 15 Apr 2013, 14:31

15. a_merryman (Posts: 718; Member since: 14 Dec 2011)


I'm going to go out on a limb here and say that the Wireless carrier understands the wireless carrier and regulations better then the satellite TV provider. Please tell me how a Japanese company buying Sprint would make the prices go up "because everything in Japan is more expensive"...thats some 3rd grade thinking on markets right there. There are reasons Japan is more expensive...its an island nation with little natural resources.

T-mobile is not different in this at all, it is 100% foreign owned...and it's the cheapest. Verizon is greedy....can't argue that. Another reason why the Softbank/Sprint merger is better, is b/c Clearwire's spectrum is the same spectrum that Softbank is deploying its 4g on...along with the rest of the world. Which means that Sprint and Softbank can buy the equipment to deploy it in larger orders which means lower prices. And the possibility of being able to roam on Softbanks network if you're in Japan and vice versa.

posted on 15 Apr 2013, 14:41 1

17. lovenyc8 (Posts: 164; Member since: 13 Mar 2013)


well i think it would be too many changes will happen if softbank will buy sprint and people don't like change. but i agree on softbank buying it would be better for them because they have the experince with wireless carrier better than dishnetwork. but lets see what happens

posted on 15 Apr 2013, 11:32

8. gmracer1 (Posts: 646; Member since: 28 Dec 2012)


Sprint's Market Cap is $21B and Dish's bid is $25.5B? LOL

posted on 15 Apr 2013, 12:27

9. ZeroCide (Posts: 700; Member since: 09 Jan 2013)


If Dish buys Sprint I feel this is the downfall of sprint. To let a cable TV company run a cell phone netwok is not good. Dish isn't exactly in good shape. Dish was good but they ran that company poorly. It is one of the word cable TV providers out there. You can see Cable TV pricing models are extremely stupid. If they bring these models to Spint this is surely the end of spints great pricing model.

posted on 15 Apr 2013, 12:33 1

11. downphoenix (Posts: 2416; Member since: 19 Jun 2010)


Dish network isnt a cable tv company. They are a satellite tv company. And they have had good marks in customer service so their pricing model cant be that bad. Its cheaper than Directv for sure.

posted on 15 Apr 2013, 12:29

10. downphoenix (Posts: 2416; Member since: 19 Jun 2010)


Could have swore Softbank bidded more.

I think Dish would be a better suit though. There isnt any overlap (or at least very little) since they are different industries. Also being able to bundle wireless with their TV services would give them value added incentive over something like what AT&T offers and also will be a benefit Sprint customers that also use Dish can take advantage of.

posted on 15 Apr 2013, 13:54

12. ardent1 (Posts: 1999; Member since: 16 Apr 2011)


DISH screwed up it's offer. Traditionally, the bid is an average of 30% premium to closing price. Additionally, a significant amount of the bid is in DISH stock, which fell with the bid. Third, DISH's financing is NOT secured as it only as a "Highly Confident Letter" from the Investment Banker.

posted on 15 Apr 2013, 14:39 1

16. JEverettnow (Posts: 210; Member since: 11 Mar 2013)


What sucks is Sprint's 4g LTE network being built out was completely dependent on the softbank deal. Now that that deal may not go through in May, the network will be slow and sparse until a dish deal goes through. This company can't afford another year of losing subscribers due to the horrible network. Not cool!

posted on 15 Apr 2013, 14:44

18. lovenyc8 (Posts: 164; Member since: 13 Mar 2013)


i agree

posted on 15 Apr 2013, 15:30

19. VAPlaya1 (Posts: 6; Member since: 31 Oct 2012)


If DISH were the buyer..that just might not be to bad. As long as they don't change Sprint to a Verizon type, money hungry, charge to much company. (Keep the unlimited plans that is), I'm good!

posted on 15 Apr 2013, 18:46

21. snowgator (Posts: 3304; Member since: 19 Jan 2011)


Let's just hope if this goes through, that Dish has better luck with Sprint then they did with Blockbuster.

So far, not so good on that one.

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