Dish Network Chases Sprint Merger with $25.5 Billion Bid
It was rumored that Dish Network is interested in merging with T-Mobile, but only if a deal with Sprint can't be consummated. Sprint is the first choice, and towards that end, the satellite TV provider is offering the wireless carrier $25.5 billion in a buyout offer. The deal would include $17.3 billion in cash and $8.2 billion in stock, which would pay Sprint shareholders $7 per share, if it's accepted.
"Our proposal provides a highly-compelling and unique opportunity for Sprint shareholders. 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," Sprint Chairman Charlie Egren wrote in an open letter. "As a result, this merger creates sizable cost and CAPEX savings and promises extensive new revenue opportunities."
Image Source: Flickr (TheDarkThing)
Dish Network would have preferred to keep negotiations private, but due to Sprint's agreement with SoftBank and impending deadlines associated with a shareholder vote, the satellite company said it felt compelled to publicly confirm its intentions.
The unsolicited offer is a bold one by Egren, who is also Dish Network's largest shareholder. It's unclear who would lead the company following a merger and whether or not Egren would serve as chairman of the board. All that's really known at this point is that a combined company would allow Dish Network to bundle satellite TV and wireless phone service.
"Our proposal provides a highly-compelling and unique opportunity for Sprint shareholders. 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," Sprint Chairman Charlie Egren wrote in an open letter. "As a result, this merger creates sizable cost and CAPEX savings and promises extensive new revenue opportunities."
Image Source: Flickr (TheDarkThing)
Dish Network would have preferred to keep negotiations private, but due to Sprint's agreement with SoftBank and impending deadlines associated with a shareholder vote, the satellite company said it felt compelled to publicly confirm its intentions.
The unsolicited offer is a bold one by Egren, who is also Dish Network's largest shareholder. It's unclear who would lead the company following a merger and whether or not Egren would serve as chairman of the board. All that's really known at this point is that a combined company would allow Dish Network to bundle satellite TV and wireless phone service.
