DISH Network makes bid to buy Sprint out from under SoftBank
DISH Network has launched a $25.5 billion bid to merge with Sprint. Although Japanese carrier SoftBank is currently preparing to purchase Sprint, shareholders for the third-place U.S. carrier would have the opportunity to reject that bid in favor of DISH Network’s. DISH Chairman Charles Ergen says that this deal hopes to create a first-of-its-kind nation-wide integrated bundle of home and mobile broadband services:
A transformative DISH/Sprint merger will create the only company that can offer customers a convenient, fully-integrated, nationwide bundle of in- and out-of-home video, broadband and voice services. Additionally, the combined national footprints and scale will allow DISH/Sprint to bring improved broadband services to millions of homes with inferior or no access to competitive broadband services.
DISH is confident that it can raise the money necessary to make this deal. If their bid is successful, they will need to pay fee for derailing the SoftBank purchase. DISH also expects that a merger with Sprint will result in growth opportunities of $37 billion, with $11 billion in cost-saving measures. DISH been looking to expand into wireless broadband recently, securing permission from the FCC in December to build its own LTE network. If they are successful in purchasing Sprint, they’ll no longer need to build out their own network, instead moving resources to aid in the expansion of Sprint’s LTE, which currently offers coverage to a smaller number of customers than Verizon and AT&T. Sprint’s shareholders will make the decision on the proposal in the coming months.
Source: Business Wire