Softbank tells banks that if they finance Dish, they won't get the business for the Alibaba IPO
According to sources familiar with the situation, Softbank is telling major banks that if they get involved in financing Dish's bid for Sprint, Softbank will not give them any business in the upcoming IPO of Alibaba Group Holding Ltd. But this might turn out to be an empty threat. Even though Softbank owns 33% of Alibaba, the company said that Softbank does not make decisions for the management of Alibaba. The latter has yet to hire an underwriter and no timetable for an offering has been made. Alibaba's IPO is one of the most anticipated on Wall Street and could generate fees for investment banks similar to the $176 million generated by Facebook's IPO
This is quickly turning into a battle of personalities between Softbank's founder Masayoshi Son and Dish's Charlie Ergen. Son focuses on Dish's lack of experience as a wireless carrier. "Charlie has no expertise in the mobile industry," Son says. But Ergen wants this so bad that he can taste it. The FCC has practically laid down the red carpet, trying to get Dish Network to become a major carrier. Back in December, the agency approved Dish's request to take the spectrum that it uses for satellite and approve its use for wireless communications.
Softbank has criticized Dish for not having financing already in place for its bid. Dish has said that it will need to finance $9 billion for its offer to purchase all of Sprint. And Softbank's threat can't make it easy for Ergen to find the money he needs. According to a source, one major bank has already changed its mind and has decided not to help finance Dish Network's bid.
Sprint stockholders will vote on Softbank's bid on June 12th. Softbank is offering cash and stock valued at $6.22 a share for 70% of Sprint while Dish Network's offer is a combination of cash and stock valued at $7 for all of Sprint. But considering that Softbank plans to inject $8 billion of capital into Sprint while Dish is not planning on putting in any money, Softbank's Son values his deal at $7.65 vs. $6.31 for Dish's offer.
1. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
Hahaha. Sounds like SoftBank is attempting to play a bit of hard ball. I guess how effective their ploy is will depend on how much the bank(s) would make financing Dish vs. Alibaba.
2. KFear (Posts: 139; Member since: 06 Feb 2012)
I hope it's Softbank. The buyout will mean a lot of good international rates and enough dough for them to GREATLY improve their network. If they keep unlimited data and offer better coverage in suburban areas, Sprint will start to look better than Verizon when it comes to bang for your buck.
3. kozza3 (Posts: 671; Member since: 17 Oct 2012)
i think it might take a little more time than you think to bolster up Sprint's network. Seriously, it was one of the worst experiences of my life having to deal with all those dropped calls and "3g" speeds. plus, CDMA is going away, it's like they will have to build an entire new network. the only reason Verizon is still top dog is because they were able to launch so much LTE so fast.
4. MartianMe (unregistered)
damn this is dirty business ....fucc corporations all over the world.
5. tedkord (Posts: 8308; Member since: 17 Jun 2009)
d**ks. Now I hope that not only does Dish win, but that these same banks refuse to finance anything for Softbank ever again.
9. jcarrigan (unregistered)
I hope softbank gets it because dish is noyl in it to rake in the small but earnest profits from sprint and are not going to put any real money into improving sprint whereas softbank actually wants to improve sprint for everyones profit. besides softbank only wants 70% control at that much money and dish wants full control with obnly a couple billion more, sounds like a rip off with what dish is proposing. id be more willing if verizon bought sprint(itll never happen but if it did, then it would sound much better then that crappy dish company controlling a cellphone company"
11. JEverettnow (Posts: 224; Member since: 11 Mar 2013)
Softbank has the resources to revamp the Sprint network and be more competitive in the U.S. market. Softbank also has LTE experience. Dish has no experience in any of this, they carry incredible amounts of debt, and after everything is said and done, the deal isn't that much better than Softbanks. It would be a flop where as Softbank would more than likely save sprint. Dish is dying and this is a last ditch effort to have a foothold in a saturated market.
6. Daftama (Posts: 609; Member since: 03 Nov 2012)
If dish gets it att or vzw here I am come...dish sucks as tv provider it will be no different in the wireless and sprint hasn't made a right decision in its life time the..two negative s don't go together
7. max9777 (Posts: 77; Member since: 11 Dec 2011)
Seems to me if Dish Acquires sprint, it will be another nextel purchase!!
Dish will screw it all up!! What sprint needs now is a major cellphone company player who will help, roll out sprints LTE and Cell phone service faster!
12. a_merryman (Posts: 749; Member since: 14 Dec 2011)
I know, if only there was a large cellular company interested in sprint that had expertise in deploying td-lte in the bands sprint plans on doing (Clearwire's spectrum).
8. downphoenix (Posts: 2975; Member since: 19 Jun 2010)
Softbank is the best bet. I hope that the Sprint stockholders use their heads (unlike the sprint board of directors that approved the nextel purchases) and go with Softbank, which is a better value for the health of the company. It may not give the stockholders as much money, but it will ensure continued value for them, Dish will just be a quick cash out and they will screw it up.
10. 65048 (Posts: 2; Member since: 09 Jan 2012)
I think SoftBank is the way to go. As a sprint employee dish would be a bad deal for sprint employees. dish already has a structure set in USA that they may layoff more sprint employees then Softbank. Dish will also hurt US economy by job loss they would create as a result of layoff, where Softbank will retain the employees and will make things better. they will put money in U.S economy. it will also be a good deal for Softbank too. U.S gets a lot of japanese visitors and softbank would be able to offer their customers in japan a great deals if they choose to travel to U.S. Win Win on both sides.. Dish is not really a big benefit other then just a package deal of phone, internet and TV but a lot of job loss.
13. jil77 (Posts: 24; Member since: 18 Feb 2010)
I hope sprint and its spectrum remains American company!