Dish Network has launched a $25.5 billion cash and stock bid to snag carrier Sprint from Japan’s communications giant Softbank, according to reports Monday morning. Should Sprint accept the offer and regulators approve the deal, consumers will get a new service that could combine mobile, broadband and television.
A media release notes Dish would pay seven bucks per share for Sprint stock, $4.76 in cash and $2.24 in Dish stock – a twelve percent to Sprint’s close on Friday.Sprint saidits board would evaluate the deal.
Dish is headquartered in Meridian, Colorado.
Shares of Sprint jumped a whopping 17.8 percent on the news, their highest level since August 2008, and slightly topped the value of the Dish bid.
Benefits for the consumer would include bundled pricing for video, phone and Internet and further access to unlimited data. In other words, the merger could create a single network for mobile, broadband and television.
The Wall Street Journalreminds us that Softbank’s Sprint merger entails a $600 million break up fee. Here’s a CES 2013 video revealing some of the new features coming to Dish’s service this year.
http://www.youtube.com/watch?v=aZyVhjl5_eo
Softbank first announcedintentions to acquire Sprint, which runs a CDMA wireless network, in October of 2012. The Japanese giant has stated that it will run Sprint as a separate entity, confirming plans to continue executing Sprint’s plan to become an all-LTE carrier by 2017.
Sprint has little choice: the company must merge with a financially sound buyer, either Softbank or Dish.
Sprint should then immediately use any such cash investment and additional spectrum towards accelerating its LTE deployment and fighting off T-Mobile. Deutsche Telekom-owned T-Mobile, the #4 US carrier, now has the iPhone and is coming behind to steal Sprint’s customers,especially prepaid ones.
That agreement hasall but passed necessary approvals. Having amended the terms of the deal, MetroPCS is now asking shareholders to vote for it,Reutersreported this morning.
Wow, talk about market consolidation.
The question is, will us – the consumers – benefit from these acquisitions by gaining a better service at lower prices?
