Over the last couple months, we’ve brought you the continuing mission of the of the Softbank/Sprint/Clearwire merger. A couple months ago, DISH attempted a rather odd bid to buy Sprint majority owned Clearwire out from under Sprint. That would be rather difficult unless they owned Sprint. Well, the final domino has fallen and DISH has launched an attempt to buy Sprint.
DISH Network has launched a $25.5 billion takeover bid for the Kansas City-based carrier. This constitutes a rival to Softbank’s $20 billion deal. The deal includes $17.3 billion in cash ($4.76/share) and $8.2 billion in shares with each Sprint share receiving 0.06 DISH shares. DISH is claiming a 13% premium over Softbank’s offer. DISH would also have to pay a $600 million breakup fee between Softbank and Sprint.
DISH’s plan would create a single network for voice, mobile broadband, and video services. DISH would pair its 30mhz in AWS-4 spectrum holdings repurposed from its satellite business with Sprint’s PCS-G LTE network, and presumably Clearwire’s future 2.5ghz TDD-LTE network. More importantly it would help DISH, which has no cell towers, deploy that spectrum.
While a long shot, given the advanced nature of the Sprint/Softbank deal, this deal seems compelling enough that Sprint would have to take a look. You can bet we’ll be following this story as it develops further.
DISH-Sprint proposal website