Dish keeps pushing, but SoftBank has more cash on the table

The ever-changing saga between Sprint, SoftBank and Dish continues today with new information regarding both talks between Sprint and Dish as well as a revised offer coming out of Japan. Dish, which has an offer on the table for Sprint to the tune of $25.5 billion is in advanced talks with the carrier that may end soon if specifics of the deal cannot be agreed upon. The current hang-up is over a proposed "breakup fee" -- Dish is offering a fee of $1 billion, while Sprint is expecting something more to the tune of $3 billion. Much like the one that AT&T had penned with T-Mobile, the breakup fee requires that Dish pay Sprint if its deal is not approved by the necessary regulatory agencies. Sprint wants to make sure that going through the regulatory approval process with Dish will be worth its while, especially considering that the regulatory bodies seem to approve of the Sprint-SoftBank deal already.

Meanwhile, in a last-ditch effort to outdo Dish in terms of raw cash thrown at Sprint, SoftBank has changed the structure of its bid to make it more appealing. The Japanese carrier is now offering a full $21.6 billion for a 78-percent share of Sprint, an increase from $20.1 billion and 70-percent previously. It has also increased the cash portion of the offer to a total of $16.64 billion, or $5.50 a share, which now beats Dish on a cash-basis. Being the capital-strapped carrier that it is, Sprint may see the increase in cash as just what it needs to quickly expand its LTE network after the deal closes.

Sprint is swaying in the direction of SoftBank for the moment, turning down Dish's current offer and giving it until just June 18th to give its "best and final offer" for the carrier. Indications are that this is also the most SoftBank is willing to budge, having added to and revised the terms of its deal multiple times since first announcing that it planned to step into the U.S. market. Let's remember that Dish still has a play on the table for Clearwire, which could cause more headaches if Sprint chooses to go with another buyer.

Source: WSJ; Bloomberg


Reader comments

Sprint and Dish fight over breakup fee, SoftBank increases offer


You know, I'm thinking of doing the same thing. I'll stick with Sprint for the rest of the summer and go to T-Mobile in the fall. By then the Note 3 and the next Nexus should be out.

I'm with you my friend! Once, I get a great GSM phone ( HTC ONE or the MOTOROLA X Phone )in the next few months...I'm heading to T-Mobile or a T-MOBILE M.V.N.O.!!!

Dish should just buy T-Mobile... The millions they save could build out more and better infrastructure! If Softbank was smart they to would see their benefit in buying T-Mobile a gsm carrier verses Sprint. Then their phones would work here too. What's the appeal with sprint anyways? T-Mobile is begging to be bought. With the influx of cash dish or Softbank has the could get T-Mobile better than sprint in no time at all.

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Although T-Mobile is a GSM carrier, Sprint has more spectrum and via Clear (which it owns roughly half) has spectrum in bands which compliments Softbank's own network.

And Sprint has a bigger infrastructure and a bigger customer base.

Anyway... damn that is a lot of dolla

If anyone is going to buy tmobile, it should be Google. I'd gladly have gmobile service. Especially if it's anything like their Internet service

Never gonna happen. If they had those kinds of designs it would have shown up in their long term plans when they bid on spectrum awhile back.

Let's not even mention that there would be at least a sniff of a rumor if it were true

Not to mention Dish and Google partnership, Google would have to much of a fight on Capital Hill to try and buy a carrier by itself but partnering with Dish gets a foot in the Door. Plus I think Google might be bank rolling Dish with all their buys and plays they have been making.

Can't.. Google already owns Motorola.. I doubt the Government would let them own 2..

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As those above me said, dream on. Google buying T-Mobile US would mean that El Goog would control everything: the hardware (Moto), the software (Android), and the network (T-Mobile). While some readers of this site may think this is a dream come true, anti-trust regulators would see it as a potential nightmare for the US consumer and shut it down as soon as they could.

Also, didn't T-Mobile just finish their merger with MetroPCS? I'm guessing the folks there would like some kind of break before doing that again.

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Makes no sense for a company to want to sell to a lower bid and no back out money. I smell something fishy with this deal. Most likely some behind the scene $$$ for some of the heads at Sprint.

Also, why is an American business so hell bent on selling to foreign owners? Do they think their head offices will remain in America after the sale? Kansas City residences should be beating down the doors over at Sprint HQ over this move.

>"Also, why is an American business so hell bent on selling to foreign owners? Do they think their head offices will remain in America after the sale? "

Most could care less. The stockholders are generally not employed by the company and usually have no loyalty to or love of the company they own. It is just investment. They see the dollars and that is all that matters.

My only concern would naively be why is a foreign company so hell bent on buying a US carrier? I understand there is money to be made, but man, if we ever had future conflicts/war with their home country I could see these foreign companies owning so much of the US market as a huge problem. Is it just me being a skeptic? Lol

For some reason I feel like Dish would be a bad move for Sprint even though it is more money up front.

After Sprint worked so hard to kill the deal between AT&T and T-mobile, Sprint deserves a lot of grief here, and a lot of financial pain.

Forgive me for entering the conversation late, but is Sprint looking to be bought out by T-mo? If they are, I will switch to Verizon because I hate AT&T and I will never go T-mo again... last time I had their service, they screwed me so bad... and T-mo has screwed a grip of my friends too so they are an epic fail =(

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