$25 billion offer made by Dish Network to buy SprintBy Angel Cuala on Apr 16, 2013 in Business, United States •
A slightly more than $25 billion offer was made by Dish Network to buy Sprint Nextel Corporation, as publicly announced by the satellite television company this Monday, April 15, 2013. A conference meeting was made to announce the offer.
Dish Sprint logos
Credit: Dish and Sprint
According to press release at CompleteDishSolution.com that day, Dish is offering Sprint a $25.5 deal, or $17.3 billion in cash and $8.2 billion in stock. If the deal will be closed, Sprint shareholders would receive $7.00 per share, based upon DISH’s closing price on Friday, April 12, 2013.
The said amount is higher than the $20 billion offer made by Japanese phone company SoftBank last October,to buy 70 percent stake of Sprint. Dish Network Chairman Charlie Ergen said on his offer letter that the cash portion of their offer represents an 18% premium over the $4.03 per share proposed by SoftBank.
“It provides more cash and affords your shareholders the opportunity to participate more meaningfully in a combined Dish/Sprint, which will benefit from a significantly enhanced strategic position and substantial synergies that are not attainable through the pending SoftBank proposal.” Charlie Ergen wrote on his letter.
“We are offering an ownership interest in a combined company with a comprehensive product and services suite, a significantly enhanced subscriber base, considerable financial and operating scale, as well as a spectrum portfolio that would lead the industry.” Mr. Ergen added.
Mr. Ergen emphasized that the proposed Dish/Sprint merging would have low-band, big band and high band spectrum access and be able to provide twice as much bandwidth as AT&T and Verizon; and growth opportunities to be estimated at $37 billion in net present value.
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