Japan's Softbank says it will complete its deal with Sprint on July 1st, despite Dish offer

Japan's Softbank says it will complete its deal with Sprint on July 1st, despite Dish offer
Despite Monday's surprise bid from Dish Network, offering $25.5 billion for Sprint, Japan's Softbank says it plans on closing its deal to buy 70% of the U.S. carrier on July 1st. The one advantage that Softbank has over Dish is that its deal is already being looked at by regulators while the $25.5 billion bombshell from Charles Ergen's Dish would have to start from scratch.

If Softbank were to turn around and walk away, it would end up considerably richer for its efforts. A convertible bond that Softbank bought from Sprint could be sold for a $1 billion profit, and if Sprint decides to go with Dish or another suitor or even if it merely walks away, the Japanese communications firm would receive a $600 million break-up fee. Judging from Softbank's statement though, it plans on closing the deal and its a message to Dish that the Japanese firm is not going to back down.


This will also impact the situation with wireless wholesaler Clearwire, which on Friday received an offer believed to be from Verizon, to lease spectrum in major markets for $1.5 billion.

source: AllThingsD

FEATURED VIDEO

18 Comments

1. drum009

Posts: 33; Member since: Jan 23, 2012

As a Sprint customer I would rather have Softbanks leadership over dish. Although I might break my contract in may and switch to T-Mobile. Better coverage in my area :)

2. simplyj

Posts: 406; Member since: Dec 23, 2009

So you would prefer all your money going to Japan instead of the United States? That's what will happen if Softbank does buy 70% of Sprint.

5. sp_5015

Posts: 6; Member since: Apr 16, 2013

Since when do American companies pay corporate taxes?? I'd bet that Softbank would end up paying more US taxes than Dish would...

8. drum009

Posts: 33; Member since: Jan 23, 2012

Ummm..... sure, why not??? I've been giving my money to sprint for a decade. What have I been given in exchange? (I don't expect anything other than usable service) How does sprint help my local community? What causes do they donate too??? Japan has a different culture and different values.... idk anything about those though :)

9. snowgator

Posts: 3621; Member since: Jan 19, 2011

A little to 1970's for my taste. Here in this century, the global economy does not remove that concern, I still buy American made products as the choice allows me, but it is as minimized as much as possible on this level. The most American made vehicles are not the Big 3 (as a matter of a fact, Chrysler is a foreign owned business now), but the Toyota Camry. One of just several examples of foreign businesses investing huge in America's economy. If Softbank invests in Sprints footprint, builds out a LTE system, and floods the US with Sprint support and advertising, US jobs will be created by the hundreds. That will be good for all of us and them.

13. Mxyzptlk unregistered

How is that a bad thing? Why leave it in the US for it to be wasted?

3. mrraider602

Posts: 36; Member since: Mar 27, 2013

Yup...I've been a Sprint customer for 7 years and been patiently waiting for improvement. Seriously considering T-Mobile when my contract is up in September.. as T-Mobile just lit up the Phoenix valley with LTE. So whoever buys Sprint you have til September to convince me to stay!!

6. TheRequiem

Posts: 245; Member since: Mar 23, 2012

You won't need to switch, I'm a technial operative for Sprint's new network and Phoenix/ Las Vegas markets are under full-scale redux. Every tower in the whole Pheonix Valley is being upgraded and there are already dozens of tower's done. However, LTE has not been switched on yet, I'm certain by September you will notice some considerable improvements. Sprint's new network is using some of the most advanced technology in the world right now.

12. JEverettnow

Posts: 228; Member since: Mar 11, 2013

I too work for sprint however in my area there is no LTE even though a lot of cabinets have been installed. In the Bay Area LTE is turned on in about 20% of the area however it runs slower than HSPA usually. I average around 5mbps on LTE there. Is this due to the fact that it isn't running at full power? Any idea when LTE in sacramento will be on? As a tech I am getting tired of telling people there is nothing wrong with their phone its just 15-150kbps on 3g is normal in this area. I tell most people we should see improvements by the end of 2013, but that doesnt make them any happier lol

14. mrraider602

Posts: 36; Member since: Mar 27, 2013

I hope so..I've been using E4GT since it launched and have been charged for wimax 4g thats never been available to me here in the valley of the sun! I just dont want to commit another two years and pay for LTE that wont be available when I upgrade hopefully to the Note 3!

17. KFear

Posts: 170; Member since: Feb 06, 2012

There is no WIMAX charge

16. KFear

Posts: 170; Member since: Feb 06, 2012

This is very true. With this softbank deal and some of their recent investments....Sprint is ready to bring out the best! Yes, i know they are digging themselves out of a HUGE hole. WIMAX was a set back, but other than that I really think Sprint is headed in the right direction. Once LTE is rolling in your town, it might be a good time to switch to Sprint.

15. jbash

Posts: 345; Member since: Feb 07, 2011

fortunately the unoffical lte in Va Beach has been a pleasant surprise. average between 20-40meg. unforetunately this will prolly come to a crawl when more users take advantage of the upgrade. i was in dc using sprint lte and i had 2 megs best at any time while my wifes wimax hummed along between 6-12 megs. since i am no longer a tech for them i will prolly take my business elsewhere soon as i figure out the next phone that wows me while on a descent network.

18. thenoodge

Posts: 32; Member since: Sep 01, 2011

sadly in va beach thats not sprint even with the lte we have i still get missed calls that never rang just voicemail

4. htc_prep

Posts: 303; Member since: Oct 09, 2009

i agree @drum009. from the sounds of it dish intended to utilize Sprints infrastructure to roll into a bundled package to take on Surewest and AT&T (home internet and mobile). i cant see too much going into improving Sprints network from Dish since they have no experience. Softbank, on the other hand, I can see better results from. not only can I see better world wide roaming prices, a more diverse portfolio of devices (hopefully water proof with TV tuners built in, a staple of smart phones in japan), i can also and more realistically see, actual help from another experienced telecom co to beef up network and speed up LTE development... not saying fact just my humble opinion.

10. drum009

Posts: 33; Member since: Jan 23, 2012

Thanks, those are some of my sentiments as well. Softbank has a good track record with being competitive and aggressive. Something sprint could use with Verizon and at&t dominating the market. Japan is also a leader when releasing new technology. If some of that can come to sprint alot faster because of their ownership, the better for USA sprint customers.

7. snowgator

Posts: 3621; Member since: Jan 19, 2011

Boy, this could be am interesting little soap opera before it is over....

11. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

It all depends on how badly Dish wants Sprint. Stay tuned.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.