SoftBank stays firm, isn't willing to pay more for Sprint
Of course, if you are Sprint in this case, you'll surely want to explore both options before any further development, and that is exactly what Sprint is doing right now. The carrier has formed a committee that will have the purpose of investigating the possible outcomes of an eventual Dish take-over, but meanwhile, SoftBank chairman Masayoshi Son has come out with a statement that his company doesn't have any plans to up its bid for the carrier.
According to Mr. Son, there are 11 key areas where SoftBank's offer provides greater benefits to Sprint's shareholders, all of which should lead to cash, stock and synergies that collectively represent a hefty 21% premium, compared to the proposal by Dish Network. We have no idea how Mr. Son's team has calculated this, but we guess they have their ways. So, it looks like Sprint isn't getting a single penny more from SoftBank. But when you think about it, they should probably be more than happy to accept the $20 billion. Who knows, that might help them get back in the black someday.
source: SoftBank via PhoneScoop
1. ajac09 (Posts: 1367; Member since: 30 Sep 2009)
aka sprint isnt worth more then that to soft bank lol
3. Doakie (Posts: 1305; Member since: 06 May 2009)
As a Sprint subscriber I'd prefer Softbank. At least they know what the hell they're doing. Maybe our LTE network will roll out faster
6. QWIKSTRIKE (Posts: 909; Member since: 09 Mar 2010)
I agree, I personally would like to see a successful carrier take over Sprint than a wannabe Verizon Dish Network. I feel that Dish will only take us down the Verizon path of more cost for less plans.
Softbank's proven success would be a better choice in the long run rather than taking "QWIK" cash today with no direction of where to g in the future other thans Dish's desire to become a Verizon rival!.
16. a_merryman (Posts: 716; Member since: 14 Dec 2011)
Well that "QWIK" cash from Dish isn't even that good of a deal. It takes over 100% of the company for only 5 billion more, which makes it rather incremental in how much more they're really getting. Dish will likely want to get rid of Sprint's management team, who have been doing an excellent job the past couple years and are positioning sprint to be on equal terms with the baby Bells in the next couple years while still offering unlimited data at a better value.
With Softbank they would have some spectrum sharing in the 2.5 GHz range, and plan on deploying the same tdd-lte network (which China Mobile is also deploying on that spectrum). This allows for them to acquire cheaper networking equipment and cheaper phones because they can pool together.
Lastly, the Dish deal would leave the new company with a massive debt of $43 Billion! You dont want to have an already cash-strapped company crushed under even more debt. It would just slow down the Network Vision buildout. And likely make sprint unable to bid and buy spectrum in the upcoming 600 MHz spectrum auction. That spectrum would allow sprint to finally have the penetration it needs for more rural coverage and give better signal indoors. Though when they turn on the 800 MHz they have, that will help too.
5. MorePhonesThanNeeded (Posts: 645; Member since: 23 Oct 2011)
Sprint isn't worth that amount of money to begin with. That is fact! Still having to pay out the nose for iPhone 5 deal last year, that leaves one hell of a hole in profits does it not? Sprint trying hard to remain number 3 because T-Mobile/Metro PCS merger will put them in a not so good position with the no.4 and no.5 cellular carriers. Good luck Sprint, you're going to need it and a few prayers too.
I like how SoftBank said their deal is better than Dish's, right money is money and 5 billion less is no way a better deal, that's hard cash pal and incentives mean little when you can't get green to flow into your coffers.
7. QWIKSTRIKE (Posts: 909; Member since: 09 Mar 2010)
If you take the 5 billion, and lack a structured plan on how to become more profitable it does nothing but lines investors pocket short term. You are only thinking like some one with no business sense at all!
Teach a man to fish and he will eat all his life if he gets off his lazy @$$!
Feed him fish every day he will continue down the same path of laziness!
10. MorePhonesThanNeeded (Posts: 645; Member since: 23 Oct 2011)
You do realize that the 5 billion extra is money that either can go to shareholders or put back into the company to strengthen their LTE roll out. Spoken like someone with no business sense at all, teaching a man to fish is great and all but Sprint isn't new to cell business my friend...preaching to the choir is all SoftBank is doing.
Also the yen is weaker so their money is as long right now, only US sales would give them good returns, but spending yen in US wold mean they have to spend more.
13. QWIKSTRIKE (Posts: 909; Member since: 09 Mar 2010)
Thats only if they did R&D, and after that with no clear direction the company suffers the same fate that put us where we are.
Instead of building a network when Sprint was 80.00 a share they rested on the F/U laurels we are on top. Customer service and service both fell, and Dan Hesse has been the real reason of them getting back on track so to speak minus the Apple fiasco he gets an A+.
Sprint being take over by an industry leader that turned a company around is what we need, not money in the hands of greedy investors.
8. pslee (Posts: 39; Member since: 05 Dec 2012)
i love sprint. they are the only carrier that is left with true unlimited plan with subsidized phone prices with reasonable monthly fees. the service in NYC is terrible with all the network upgrades going on, but I really have good LTE where I live and the reception/data speed is only getting better. when they start to roll out 800mhz lte, sprint will be getting good chunk of customers back. I want softbank to be on top of everything that sprint does since softbank is a big corporation and there must be a secret to their success.
9. QWIKSTRIKE (Posts: 909; Member since: 09 Mar 2010)
The service in NY is only terrible in certain areas upgrades are going on. Most places that I visit has 4g in the Bronx. My service as become much more stable, and I am even getting 4g at home inside my house. When the network is complete Sprint will out perform or equal Verizon's service.
Softbank will probably be best for us at this moment!
11. MorePhonesThanNeeded (Posts: 645; Member since: 23 Oct 2011)
T-Mobile is still unlimited and is cheaper and more forward thinking than Sprint. At least they didn't go spend 15billion dollars to procure iPhone, which turned out to be a stupid idea in the first place for Sprint. With Metro and T-Mobile probably going forward with their merger, Sprint will become the 4th guy and looking up. T-Mobile is rolling out their LTE and Metro already started deploying their(already on the same page). Subsidies are going away, about time since no one wants them or needs them really. T-Mobile started this and I think it's a great thing, everyone will follow suit. So it will be just T-Mobile and Sprint with unlimited data.
I don't see many customers running back to Sprint, why'd they leave in the first place? If they went to T-Mobile, they're never coming back. Magenta does everything Sprint does but better, only problem is they both suck with updates for their devices, Sprint updates are quick but they tend to jack up your device or brick it. T-Mobile doesn't really update anything, you usually have to do it yourself.
VZW is expensive as hell, yet they still have a crap load of customers, it sure wasn't unlimited data nor inexpensive plans that got them there either. It's reliability!
14. QWIKSTRIKE (Posts: 909; Member since: 09 Mar 2010)
No they are not.....if you were thinking clearly you would not utter such ignorance. Hesse made a bad judgement call with the price he paid for Apple, other wise it was a good choice. Forward looking building a network with the demise of Light squared is why we have LTE popping up all over the place. It's late only because the Light Square deal failed. Light Square would have been better for America, as well as Sprint, and that is why the deal was blocked. A member of the FCC owned stock in AT&T and because of that fiasco Light Square was given new life only after suffering a.
bankruptcy. Thins are not as cut and dry as you lay them out, but then again what corporate business have you ever made work!
19. JunitoNH (Posts: 964; Member since: 15 Feb 2012)
Yup, something T-Mobile really.........really lacks.
21. Daftama (Posts: 575; Member since: 03 Nov 2012)
Easy there why you hating on vzw..everyone wants to be like them...they fall sooner or later...as bad as sprint tmbile is light years away to get ahead of sprint..
22. QWIKSTRIKE (Posts: 909; Member since: 09 Mar 2010)
No hate in fact I applaud them for taking advantage of the new LTE gimmick. As they put it LTE is raking in the profits beyond their wildest dreams from folks so enamored with it.
Now they offer 300 minutes and 1 gig to all new contracts for 90.00 a month. If they can get it I applaud them. Since I mostly need a phone to make calls I pay an extra 10.00 for unlimited data, and with LTE most every where I travel here in NYC 79.00 puts me way ahead of any plan that Verizon could offer me for their new LTE trick!
Like you said in two years Sprint will be ahead of them or equal to them that's why they want to buy Clearwire Spectrum ahead of the Sprint deal to block Sprint's forward ambition in the TD LTE arena.
12. techaman (unregistered)
masayoshi knows how to make a crappy company better i like this plan he talked about last year, god knows dan and his team know nothing. Its good to see that my hard earned money is paying for some ass to sit at a table and find out whats better an ok sat company or company thats does this for a living.
15. downphoenix (Posts: 2378; Member since: 19 Jun 2010)
well to be fair Softbank's offer is better. $20b for 70% vs $25b for 100%. 70% of Dish's offer would be $17.5b
18. lsutigers (Posts: 759; Member since: 08 Mar 2009)
And Sprint is on a upward trend which is why Softbank wants the deal now. In a few years Sprint will be worth way more than that if the trends continue.
17. InspectorGadget80 (Posts: 6678; Member since: 26 Mar 2011)
so there are not as greedy as everyone thinks then why bother trying too buy for Sprint
20. Daftama (Posts: 575; Member since: 03 Nov 2012)
Sprint in the entire lifetime hasn't made a righr decision you think they will now
23. QWIKSTRIKE (Posts: 909; Member since: 09 Mar 2010)
Hiring Dan Hesse and staying the course with him was a good choice.