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Unread April 15th, 2013, 08:57 AM
SpiceCake SpiceCake is offline
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Philly.com Dish Network Makes $25.5 Billion Bid for Sprint Nextel

So it looks like Blockbuster's saga of "The Stores" may continue for the long-term after all. Of course, even if Dish does buy Sprint, it will still be several more quarters before their service is off the ground -- several more quarters during which BB will lose even more money for Dish. Also, they're going to need thousands more stores than just the ~500 stores they have now. Are they actually going to expand by opening more stores branded as "Blockbuster?" What the hell kind of sense does that make? So they can keep confusing people and trying to convince them that this is "The New BB?"



http://dealbook.nytimes.com/2013/04/...sprint-nextel/

"Smartphones, tablets and computers all pull data from the Internet, but people still pay two different bills: the high-speed connection they get at home, and the wireless connection they get outside. Dish Network, the pay-TV operator, wants to bridge that gap.

Dish Network said on Monday that it had submitted a $25.5 billion bid for Sprint Nextel, the nation’s third-largest wireless carrier, after Verizon Wireless and AT&T. It says that a merger between the two companies could roll television, high-speed Internet and cellphone services into a single package that would be faster and more affordable for consumers.

“It really means that we’re going to give consumers what every consumer wants,” Charlie Ergen, Dish Network’s chairman, said in a phone interview. “They want broadband and video and voice in their home and want the exact same thing outside the home. And they want it to look and feel and priced outside the same as it is inside.”

Dish Network’s bid is an effort to scupper the planned takeover of Sprint Nextel by the Japanese telecommunications company SoftBank, which agreed in October to acquire a 70 percent stake in the American cellphone operator in a complex deal worth about $20 billion.

Under the terms of its proposed bid, Dish Network said it was offering a cash-and-stock deal worth about 13 percent more than SoftBank’s bid.

Dish Network values its offer at $7 a share, including $4.76 in cash and the remainder in its shares.The offer is 12.5 percent above Sprint Nextel’s closing share price on Friday.

“The Dish proposal clearly presents Sprint shareholders with a superior alternative to the pending SoftBank proposal,” Mr. Ergen, said in a statement.

Mr. Ergen said a “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.”

Dish Network said it would be able to combine its existing broadband and TV offerings with Sprint Nextel’s cellphone operations, allowing it to better compete with rivals like Verizon that are moving into new areas in search of revenue.

Dish Network’s effort to take over Sprint is the latest of many moves toward consolidation in the highly competitive broadband industry. In 2011, AT&T tried to purchase its rival T-Mobile USA, a move that was blocked by the Justice Department because of antitrust concerns. Last year, Verizon scored a deal with a group of cable companies that agreed to sell it spectrum licenses to build its wireless network in exchange for allowing them to sell their cable services inside Verizon stores.

As the No. 3 cellphone service provider, with 56 million subscribers nationwide, Sprint Nextel has struggled to catch up with larger rivals. It is expected to face even more competition as the parent company of T-Mobile USA, Deutsche Telekom, moves closer to a multibillion-dollar agreement to buy MetroPCS.

Dish Network said it would finance the cash component of the takeover through a combination of $17.3 billion in cash and debt financing.

Sprint said in a statement that it would look at Dish’s proposal, but declined to comment further on its plans.

“Sprint Nextel today confirmed it has received an unsolicited proposal from Dish Network to acquire the company,” said Roni Singleton, a Sprint spokeswoman. “The company said that its board of directors will evaluate this proposal carefully and consistent with its fiduciary and legal duties. The company does not plan to comment further until the appropriate time.”

It is unclear whether a Dish takeover would make much of a technological change much to Sprint’s wireless service. Chetan Sharma, an independent telecom analyst who is a consultant for carriers, said that the only obvious change for consumers would be from a marketing level, not a technology level. While the bills may be consolidated, it would not be easy to share the benefits of a high-speed Internet connection at home with wireless networks that connect to a phone outside, he said."
The Following 5 Users Say Thank You to SpiceCake For This Useful Post:
djblade (April 15th, 2013), Hot Head (June 4th, 2013), johnlow71 (April 15th, 2013), kOre (October 14th, 2013), Wundergurl007 (April 18th, 2013)
 

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