New deal with SoftBank includes poison pill for Sprint
In addition, the revised deal will allow Sprint to add a poison pill. The pill lies dormant until someone obtains a certain amount of stock in Sprint that will trigger it. Triggering the pill could result in any number of actions meant to dilute the holdings of an unwanted suitor, from paying executives billions of dollars in a Golden Parachute payment, to selling off key divisions of the company to make it unappealing for a potential buyer. That "scorched earth" strategy would allow companies friendly to Sprint to buy key parts of the company for bargain basement prices.
Meanwhile, talks between Dish Network and Sprint had apparently come to a halt over the inability of both sides to come up with a reverse break-up fee that would be paid to Sprint in the case Dish could not win regulatory approval, or get financing for its deal. The payment would lessen Sprint's risk of going with the late developing Dish offer, which does not have financing in place or regulatory approval like the SoftBank bid. Dish was willing to give Sprint a $1 billion reverse break-up payment while Sprint wanted $3 billion. Considering that SoftBank's reverse break-up fee to Sprint is only $600 million, it seems apparent which suitor Sprint really wants to win the battle.
Sprint told Dish that it anticipated that a deal between the two would take a year to close. Dish said that it could wrap up a deal in four months. The bottom line right now is that Dish has until June 18th to present a fully financed counter offer. Dish Network's investment bankers will no doubt spend the next few days "dialing for dollars," which is when international banks are approached about putting together a syndicate to guarantee funding for a bid.
2. a_merryman (Posts: 716; Member since: 14 Dec 2011)
Alright, lets get this deal done, Softbank. Then focus on closing the Clearwire deal and lighting up the 800 MHz and 2500 MHz LTE. So close now.
6. JEverettnow (Posts: 209; Member since: 11 Mar 2013)
We have no 2500mhz LTE scheduled to be going down I dont believe. All I have seen is 1900 and 800 mhz 4g upgrades slated for the next year.
7. a_merryman (Posts: 716; Member since: 14 Dec 2011)
Clearwire has already got some 2000 sites that run 2500 MHz LTE up, they just arent running yet. Supposedly we should see the 800 and 2500 start popping up by the end of this year, along with phones that support all 3, and then go into full swing next year to finish up the Network Vision project.
3. PAPINYC (banned) (Posts: 2315; Member since: 30 Jul 2011)
Man, the only thing I can say is, thank GOD I'm not with Sprint.
4. NewTone (Posts: 21; Member since: 20 Feb 2013)
thank god i will be leaving sprint in a couple months, t-mobile here i come 50% less than what im paying now for sprint, same service, actually better with 4g service
5. QWIKSTRIKE (Posts: 909; Member since: 09 Mar 2010)
Sprint service is getting better every month, and by years end and certainly by next years end you will want to come back . good luck!
8. MyJobSux (Posts: 83; Member since: 01 Apr 2012)
Tmobile doesnt subsidise their handsets like the bigger carriers do. Hope you can take your existing phone. And their prices arent that much lower than Sprint if at all.