Dish has made a move to takeover Sprint after the satellite provider tabled a bid of $25.5 billion for America’s third largest mobile operator, according to an announcement made this morning.
The bid is reportedly a 13 percent premium above that of Japan’s SoftBank, with Dish offering to buy every share for $4.76 in cash and an estimated $2.24 in Dish stock each, according to the Wall Street Journal. SoftBank, on the other hand, agreed to a 70 percent stake for $20.1 billion last October; the counter bid could spark a raised offer from SoftBank.
Ergen and Dish previously tried to purchase Clearwire’s spectrum to give the company a footing into the wireless industry, which would allow it to offer more than just pay TV services across America. The company is aiming to bundle video, Internet and voices services into one package, and provide broadband-speed wireless Internet access to American homes that do not have access to cable connections.
A statement from Dish Chairman Charles Ergen, who spoke openly of the company’s desire to acquire an operator during AllThingsD’s Dive Into Media event earlier this year, called the Dish proposal “a superior alternative” to that of SoftBank:
“Sprint shareholders will benefit from a higher price with more cash while also creating the opportunity to participate more meaningfully in a combined DISH/Sprint with a significantly-enhanced strategic position and substantial synergies that are not attainable through the pending SoftBank proposal.”
Dish believes that the deal would bring about $11 billion in cost savings and the opportunity to grow by $37 billion in net value.
Headline image via Joe Raedle / Getty Images
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