Dish CEO Ergen responds to Softbank's attack; Sprint stockholder vote set for June 12th

Dish CEO Ergen responds to Softbank's attack; Sprint stockholder vote set for June 12th
Things have taken a turn toward the ugly with the battle for Sprint. The nation's third largest carrier has received a $20.1 billion offer from Japan's Softbank for 70% of the company, and a bid for the entire company from Dish Network in a deal valued at $25.5 billion. With two competing deals, you can expect some clashing, which started yesterday when SoftBank chief executive Masayoshi Son said that the offer by Dish will leave Sprint debt-ridden and stymie the carrier's attempted turnaround.

Son also stated that Softbank's offer for 70% of Sprint will result in less leverage and that its time schedule is one year ahead of the deal from Dish. The Softbank executive also said that the Dish transaction is not financed yet. Dish is offering Sprint stockholders $4.76 in cash and $2.24 in Dish stock for a total price of $7. The Softbank deal is a cash and stock package currently valued at $6.22. But Son pointed out on Wednesday, that his company will bring $8 billion of capital into Sprint as opposed to no capital from Dish. After regulatory delays, breakup fees and transaction costs, Son values his deal 21% higher at $7.65 a share compared to $6.31 for the Dish offer.

Dish Network CEO Charles Ergen went on full attack mode on Thursday, saying that his deal provides a higher value than Softbank's offer, and that Sprint will need employees that speak English in order to operate. But Softbank did get approval from the SEC for its Form S-4 Registration, which does put it one step closer to completing its transaction. Sprint stockholders will vote on the Softbank offer at a stockholders' meeting which will be held on June 12th.


source: BusinessWire, Reuters

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20 Comments

1. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Ergen is starting to sound a bit peeved. Could it be that his company's offer is not as good and was exposed for what it was? Softbank is definitely closer to being able to do the deal with its Form S-4 approval. Bird in the hand vs. 3/4 bird in the bush.

3. MikeG77

Posts: 426; Member since: Nov 24, 2008

Doug i think your right. He knows that Softbanks offer is better.....its simple math. If he wants to buy Sprint he should just pony up the dough and buy the whole company.

2. alpinejason

Posts: 262; Member since: Sep 06, 2011

Somebody needs to take over.Sprint and get rid of that god awful 1900 Hz cdma ASAP. It's basically useless

15. lsutigers

Posts: 832; Member since: Mar 08, 2009

WTF are you talking about? I really don't think you know.

4. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

I love this, this is like a modern day soap. Both sides digging & attacking each other like if Sprint was the lucky pot of gold under the rainbow. All I know is that the real winners here will be the actual Sprint customers because with either Softbank or Dish's financial backing Sprint's LTE network will get a HUGE shot in the arm & might make Sprint a juggernaut once again like it was.

5. MartyK

Posts: 1043; Member since: Apr 11, 2012

Amen!

7. QWIKSTRIKE

Posts: 1461; Member since: Mar 09, 2010

Not entirely true...the Softbank offer is better for Sprint, and its customers. Where as the Dish offer will only try to be exactly what Verizon is...a cash cow for stock holders, and only take advantage of it's customers by offering less for more money to satisfy big bonus CEO's and investors. Sure they have coverage most every where you go but to pay 90.00 for 1 gig of data and 300 minutes the current plan is worthless. When Voip is implemented Verizon's customers will start to feel the heat form limited voice, and data package all being as data sucking the value out of their family plans.Since Verizon is making over 45% in profit anyone that cheer leads them saying that they need to make money is an idiot, or owns lots of stock. The current plans today will suck your wallets dry when Voip is implemented because data and voice will all be one! Verzion can offer plans that offer value with out going broke but they choose to rake customers over the coals for a slight advantage in early LTE roll out, and I can tell you when Sprint has their network all laid out some you Verizon fans will bail for unlimited data because unlimited data is what you need when VOIP is implemented on all carriers. Sprints 1900 spectrum will be all LTE by next year, and 800 LTE and 2500 LTE will be implemented with 600mhz in the future being rolled out.. All in all Sprint will have the better network by 2015 going into 2016 for sure. Go look at how their network is being implemented before you all say no, and answer this with facts! This is why Verizon offered 1.5 billion for Clears 2500 spectrum, because it would slows Sprints ambitious future growth in this area.

8. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

If Dish isn't going to put money into their potential Sprint acquisition then there is no point in buying a struggling company. I really doubt Dish would screw themselves like that. I think if either Dish or Softbank buy Sprint, it will indeed be a huge boost to Sprint's future growth.

9. a_merryman

Posts: 749; Member since: Dec 14, 2011

If dish buys sprint they wouldn't really have much money....the new company would have $45 billion in debt...

16. QWIKSTRIKE

Posts: 1461; Member since: Mar 09, 2010

Dish wants to buy Sprint to enhance "Dish's" own distribution agenda. Dish sees how profitable Verizon has become offering home entertainment, and wireless and merging them into one. Their only goal is to copy cat Verizon in every way to line their own pockets, as well as investors. Sprint will just be an outlet for Dish to do exactly what Verizon is doing. That will not benefit Sprint or its customers because I will bail for T Mobile, and so will every one else if they do try this!

14. meowcenary

Posts: 187; Member since: Apr 13, 2012

Never had any issues with the so called basically useless newtwork. By the way in the end it would be voice over lte or whatever the new protocol is going to be called.

6. mrblah

Posts: 577; Member since: Jan 22, 2013

Please be softbank

10. a_merryman

Posts: 749; Member since: Dec 14, 2011

11. lauremar

Posts: 181; Member since: Feb 29, 2012

Touche

12. lauremar

Posts: 181; Member since: Feb 29, 2012

Touche

13. ZeroCide

Posts: 816; Member since: Jan 09, 2013

Ergen sounds douchy and biiter.

17. radji

Posts: 17; Member since: Mar 26, 2012

Dish = Douche. Dish's offer is $25.5 billion for 100% of the company. Softbanks offer is $20.1 billion for 70% of the company. That means Dish is trying to buy that last 30% at half the price. Softbank: $20.1 billion / 7 = $2.87 billion for each 10% stake (7*10% is 70% stake) Dish: $25.5 billion / 10 = $2.55 billion for each 10% stake (10*10% is 100 % ownership) Yeah, Dish's offer is that much better cause they want to get all of Sprint. Idiots. IMHO, I think this is a ploy by Dish to distract Sprint and Softbank so Dish can try and steal Clearwire right out from under them...it's what I would do.

18. QWIKSTRIKE

Posts: 1461; Member since: Mar 09, 2010

Yes....because Dish also gets Clearwire's spectrum by default with the Sprint purchase.With Dish AWS spectrum they would be sitting pretty for wireless video as well putting them in the same arena as Verizon competition wise. They are trying to steal Sprint on the Cheap and then pretend that they are looking out for Americans by keeping the company American owned. I bet their customer service is outsourced over seas just like all the other carriers including Sprint!

19. Daftama

Posts: 641; Member since: Nov 03, 2012

Sprint has never made the right decision in there lift time what makes them think they will make the right one now.....roll you LTE faster get on Voip LTE follow your daddy Expensive VZW

20. waterninja21

Posts: 28; Member since: May 03, 2013

Charlie Ergan is a Hypocrite with his comments about that Sprint needing employees "that speak english". I lost my job in 2010 because of him, when he closed the Dish Network call center in McKeesport, PA in 2010, to send our jobs to India. Go Softbank because Ergan is a 2 faced SOB!!!!!

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