Dish Secures $9 Billion Financing for Sprint Bid

CommanderFrank

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Dish Network has regrouped and put together a new consortium of financial backers to pursue the purchase of Sprint Nextel Corp. The offer to purchase Sprint is reported to be worth $25.5 Billion. Dish is competing with Japan’s Softbank Corp. who put in a bid to purchase a major portion of Sprint last October.

The Sprint acquisition, should it go through, is expected to generate positive synergies for both the companies in terms of countering stiff competition from market leaders like AT&T Inc. (T) and Verizon Communication Inc. (VZ), which dominate nearly 35% of the U.S. market.
 
I wonder if I will lose my SERO plan with this buyout.
 
Id much rather dish get sprint over the japanese bank.

Lesser of two evils?
 
What so dish wants to destroy a cell company now? I would rather a foreign company buy sprint. Dish is a death blow and a guarantee there will be one less player competing.
 
The deal with dish is a worse deal overall. Although they are paying more they want a 100% buyout of sprint, whereas Softbank was going to do 70%. The actual price per share for sprint from the dish offer is quite a bit lower than softbank. Also seems like dish has to go out on a limb to afford this acquisition. If I held any number of sprints voting shares I would definitely rather have softbank buy sprint out.

As far as I remember softbank has more know how and more capital to invest into sprint than Dish who has to leverage themselves highly to just buy sprint out.
 
Is sprint in trouble or something? Why would they sell... well aside from the top wanting to cash out.
 
Is sprint in trouble or something? Why would they sell... well aside from the top wanting to cash out.

Sprint has a lot of debt and Network Vision was adding to it. If they had any more surprises like a large loss of customers, or the need to bail out Clearwire again they would basically be fucked. Softbank buying them wouldn't wipe out the debt but a bigger company would be able to handle it if the worse happens. Merging with Softbank would give Sprint cash. Merging with Dish would actually increase Sprint's debt even higher, but would give more money to shareholders in the short term.

Hopefully the shareholders actually care about Sprint and aren't just looking at right now. Softbank doesn't seem to be worried, at least three days ago they weren't. http://blogs.wsj.com/moneybeat/2013...ftbank-toying-with-dish/?mod=msn_money_ticker
 
Lots of talk within Sprint regarding changes being implemented now in preparation for the Softbank deal moving forward, with zero changes or discussion around the possibility of the Dish deal.
 
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