Sprint and Clearwire kick DISH to the curb, agree to increased buyout offer
The revised offer comes to $5.00 per share, which is 47% higher than Sprint’s previous bid, and 14% higher than DISH’s tender offer.
This comes as Sprint announced a lawsuit earlier this week against both Clearwire and DISH to halt a further forward progress in DISH’s aspirations to buy Clearwire (a fruitless effort from the very beginning). Minority shareholders have now switched gears in favor of Sprint now that the company has upped its offer.
What’s not to like? The offer is a better than 300% premium over Clearwire’s abysmal share price last summer when it bottomed at under a dollar and dwelled in the basement until after Sprint and SoftBank announced their merger plans.
Of course, if you have been paying any attention to this drama like we have, then it is fair to expect some type of response from DISH. Whether it will attempt to adjust its offer or file some kind of lawsuit is certainly a pair of options that, if pursued, would surprise no one. However, Mr. Ergen cannot be feeling to good about things right now and we would not mind being a fly on the wall in the executive offices at DISH.
The ball is in DISH’s side of the court, maybe we will see a “plan B” instead.
1. dorianb (Posts: 540; Member since: 24 Oct 2012)
While I don't mind Dish for TV services they had no dog in this fight. Beat by Sprint for Clearwire. Beat by SoftBANK for Sprint. Don't go after T-Mo cause AT&T tried that & failed. Maybe they should buy Leap/Cricket & call it a day. *
6. a_merryman (Posts: 749; Member since: 14 Dec 2011)
I dont think the FCC would have a problem with Dish buying T-mobile, Dish will have to do something fast b/c they need to build out a network within the next couple years or lose their spectrum.
8. Dr.Phil (Posts: 1008; Member since: 14 Feb 2011)
AT&T's failed acquisition of T-Mobile has very little, if anything, to deal with any possible partnership/ownership between T-Mobile and Dish Network. The AT&T/T-Mobile merger was seen in the eyes of the FCC as anti-competition and monopolistic in nature. It was the nation's number 2 carrier buying out the nation's number 4 carrier. Dish Network could probably merge or become a partner to T-Mobile with little to no problems, except when it would come to having both companies approve the deal.
Also, you as a consumer may want Dish to end up pairing up with whatever cell phone provider you have. They have spectrum on hand that could end up increasing your signal coverage as well as the amount of bandwidth being sent back and forth between your device and the cell towers. Just some food for thought.
10. Droid_X_Doug (Posts: 5993; Member since: 22 Dec 2010)
If Dish/Ergen really want to play in the US cell phone market, it might be time to make an offer for T-Mo. Or one of the regional companies. Sprint & Clearwire just wasn't going to happen.
Time to move on.
3. waterninja21 (Posts: 23; Member since: 03 May 2013)
Ergan is very cheap, I mean he let Viacom Channels drop from lineup about 7 years ago because he didn't want to pay more. Recently he completely dropped AMC because he wont pay money. Or he could raise his bid and outsource more Dish Network jobs like they did a few years ago.
4. Galen20K (Posts: 524; Member since: 26 Dec 2008)
Dish do NOT go after T-Mobile.... consumers would not like it.
5. THEJET88 (Posts: 18; Member since: 11 Sep 2011)
yea what ever wheres the new windows phones???
7. a_merryman (Posts: 749; Member since: 14 Dec 2011)
Thank god, now all of this will hopefully be behind us and Sprint/Softbank/Clearwire can finish building out Network Vision 1.0 & 2.0
9. mike2959 (Posts: 418; Member since: 08 Oct 2011)
What a utter disaster Sprint is. I had them for 5 years and it was like a bad relationship. She
Kept promising to get better, all lies. Sprints 3G data speeds for example. Same speed today as 5 years ago guys!
For 5 years constantly ranked the worst. Then the debacle of WiMAX. 6 billion of wasted company assets, shareholder value etc...
In the past decade they have never ranked 1st in anything. There're always trying to "figure it out".
What a horrible network.
11. max9777 (Posts: 77; Member since: 11 Dec 2011)
Just because you have a bad experience with Sprint, does not make it a horrible company, I have been with sprint for many years myself, I have also traveled across the United States and have seen the Good, the bad, and the worst. But nonetheless, the company is trying to fix their mistakes when Nextel was purchased. Now we just have too see what will happen next...
Besides, I have many friends who traveled the country as well and had horrible experience with Verizon, T-mobile, and AT&T. People will never be fully happy with what they have, and some companies are much better in different locations than others, but the main issue at state is money.
I live in NYC, and have zero issues, I just came back from deployment and I have LTE on my phone, If I am correct LTE has not been fully established with Sprint in NYC yet, but it works almost everywhere, where I need it to work.
12. kindlefireowner (Posts: 487; Member since: 05 Dec 2011)
I love reading about Sprint's latest soap opera. First thing Sprint should do is fire all the Board members and upper management from Clearwire. Clean House.