SoftBank gives Sprint permission to talk to Dish
Sprint's board has recommended that its shareholders vote in favor of the SoftBank transaction, although a special committee of the board is taking a long hard look at the Dish Network bid to see if it could be turned into a higher bid. The Sprint stockholders will be voting on the SoftBank bid on June 12th. While on its face, the Dish bid would seem to have more value. But the Japanese telco is planning on injecting Sprint with $8 billion in capital if it succeeds in buying the carrier.
You might ask why the Japanese based firm would allow Sprint to talk to the company that has a rival bid for the carrier. The answer lies in the confidence that the Japanese firm has in its offer. According to a statement released Monday by SoftBank President Ron Fisher, the company has great confidence in the value of its bid and is hoping to move quickly to close the deal. In other words, SoftBank hopes that by allowing Sprint to talk to Dish, the board of the mobile operator will evaluate the Japanese company's offer as being superior to the one made by Dish and move quickly to close the deal.
1. Droid_X_Doug (Posts: 5492; Member since: 22 Dec 2010)
Just a view from the sidelines, but it would seem that the Softbank offer is better for Sprint - $8B in additional capital injection buys a lot of LTE gear.... Dish isn't buying any LTE gear for Sprint.
11. jcarrigan (unregistered)
I cant believe there even considering dish's proposal. Lets look at the numbers shall we?
1: Softbank offers $20.1 billion for 70% control and will invest $8 billion to improve spritn while sprint still has some tiny bit of control.
2:Dish offers $25 billion for full control with no extra incentive to improve sprint.
I vote softbank
2. Dr.Phil (Posts: 856; Member since: 14 Feb 2011)
I still wish Dish would put the $25 billion together with some funds from, say, Google and make a whole new carrier. Imagine a world where all you had to pay for was for data instead of this whole voice, messaging, and tiered data packages they try to shove down your throats now. A man can still dream of how the world should be...
3. der614 (Posts: 13; Member since: 24 Jul 2009)
Whatever Sprint.....just don't screw this up.
4. wumberpeb (Posts: 412; Member since: 14 Mar 2011)
Just hurry up and take the Soft Bank deal already, considering that by the time the deal is approved and the takeover is finished, it'll be at least a year before any of that $8 billion in capital makes any difference to their LTE rollout or overall coverage... get it done Sprint
5. MyJobSux (Posts: 76; Member since: 01 Apr 2012)
Seems like more of an issue should be raised about a foriegn company trying to buy controlling shares of an American based company. Seems if this happens it will kill any chances for Sprint to carry government agencies or companies competing with Asian markets. Id rather see Sprint stay on its own. If it needs to then sell less than 50% share in the company. I dont know all the financial whoas of Sprint but I feel the American company should stay American. I also dont think Dish will really improve Sprint as a cellular provider.
6. max9777 (Posts: 57; Member since: 11 Dec 2011)
Dish will not in anyway improve Sprint as a cellular company.. Ergan has no experience in Cell phones business, he is just eager to own a phone and cable company that is all.. Without proper management sprint will crumble under Dish, With softbank being a successful CELLPHONE company in Japan, Sprint has better chances of excelling. Nothing in America is American anymore, there is a saying If you can't beat them, join them.
7. Coldwater29 (Posts: 2; Member since: 11 May 2013)
Verizon Wireless is half owned by Vodafone (based in the U.K), and they have a decent amount of government contracts.
SoftBank is a successful company that can help Sprint more than it can hurt it, they have a in-place TD-LTE Network, they have the experience of being a true cell provider. The Dish offer is trash, yes it's more money, but I wouldn't trust Dish with anything.
12. MyJobSux (Posts: 76; Member since: 01 Apr 2012)
Good points (max & coldwater). Having a company that really has no experience opens a huge door for failure. I dont think the UK has been a huge threat to us from an informational standpoint though. Is Sprint really in such dire straights that they must sell out? They are purchasing more spectrum, increased their client base and are in a deal with Clearwire.
8. tokuzumi (Posts: 225; Member since: 27 Aug 2009)
As long as sprint becomes better off with whoever buys them, this will be a good thing. Maybe sprint can be have a network again. I just wish they'd open up boost and virgin to allow any sprint phone. I'd be on the Virgin $35/mo plan in a heartbeat. But I don't want an Epic Touch 4G, or the One V.
9. der614 (Posts: 13; Member since: 24 Jul 2009)
I feel as though Sprint does not know which route they want to take to be honest. If they were 100% set on SoftBank I believe that they wouldn't even entertain Dish's offer. I think at this point in Sprints eyes its even and could go either way. But Sprint just need to do whats best for them as a whole.
10. wiiandds (Posts: 60; Member since: 15 Mar 2013)
I find it funny that dish thinks Sprint is only worth additional 5.4 billion dollars for the whole company. To me that sounds like a low blow.
13. QWIKSTRIKE (Posts: 827; Member since: 09 Mar 2010)
The only way Sprint may feel this is good is because they in the back of their minds want to be like Verizon. To have wireless and movie subscription is compelling. If dish were to invest in building out Sprints network rather than to just use its bandwidth to distribute Movies would be alright as long as they don't go the Verizon route and rake us customers over the coals for stockholder profits.