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Dish Network launches $25.5B bid to merge with Sprint

post #1 of 29
Thread Starter 
The nation's no. 2 U.S. satellite television provider made waves in the worldwide wireless industry today, as Dish Network launched a $25.5 billion bid that could see it snagging Sprint from Japanese communications firm Softbank.

dish ripples
Dish already offers high-speed Internet, television, and phone service, and hopes to add wireless by acquiring Sprint.


News of Dish's merger proposal broke on Monday, with The Wall Street Journal reporting on Dish's combined cash and stock offer. Under the deal, Dish would offer $7 per share of Sprint stock, of which $4.76 would be cash and $2.24 would be Dish stock.

Dish says that its offer represents a 12 percent premium over Sprint's closing price on Friday and a 13 percent premium over a rival offer from Japanese telecommunications and Internet company Softbank.

Softbank in October made a $20 billion bid for a controlling share of Sprint. That bid would have Softbank holding 70 percent of Sprint's shares, but shareholders have yet to approve the deal.

Dish's proposal would leave Dish shareholders in control of the resulting combined company, which would hold more than $36 billion in debt before taking into account the additional $9 billion Dish would have to borrow to make the deal go through. Dish would also have to pay a $600 million "breakup fee" to Softbank.

Sprint's $35.3 billion in revenue for 2012 is more than twice the $14.3 billion Dish booked for the same year.

The resulting entity would occupy a peculiar spot in the U.S. telecom industry. Sprint is the nation's third-largest wireless carrier, and Dish Network its second-largest satellite TV provider. A Sprint-Dish hybrid, then, would be able to provide video, high-speed Internet, and voice service across the country. Dish Chairman Charles Ergen floated the possibility of customers without access to broadband from a cable company being able to sign up for wireless Internet service delivered from Sprint cell phone towers to an antenna installed on their roof.

Dish has been looking to parlay its existing service into a wider wireless provider status for some time now. The satellite TV provider has been buying up spectrum to make a move into wireless, and earlier this year Dish made an informal bid to buy out Sprint-owned Clearwire. The Clearwire deal, though, is said to have stalled due to difficulties stemming from the multiple partners with a stake in the company.

Aside from the "breakup fee," the Sprint deal is said to be much easier to complete. Neither Softbank nor Sprint has commented on the offer as of yet. Sprint shares were up 15.43 percent pre-market on Monday.
post #2 of 29
Will the combined entity be called Dash?
post #3 of 29
Quote:
Originally Posted by ascii View Post

Will the combined entity be called Dash?

 

I think "Splish" sounds much fancier.  

post #4 of 29

Why not call it Pindrop Satellite?

 

Does that date me, immediately associating Sprint with that? 1tongue.gif

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
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post #5 of 29

Dish Network and Sprint still exist?  Is this the merger of the also-rans?

post #6 of 29
Next up: Time Warner or Comcast bids for T-Mobile.
post #7 of 29
That is a lot of debt to create a service that is rapidly becoming a utility.
Crying? No, I am not crying. I am sweating through my eyes.
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Crying? No, I am not crying. I am sweating through my eyes.
Reply
post #8 of 29
Samsung, the Dirty Trickster

The case stems from media reports on a post in an online forum on April 1 that said Samsung hired workers in Taiwan to open several sock-puppet accounts as part of a marketing campaign to promote its new flagship phone Galaxy S4 in the country. The post, which has gone viral online, said OpenTide Taiwan, a marketing company hired by Samsung, asked part-time workers to use multiple propaganda accounts on the Internet to promote the company's phones and attack products from its rivals.

A "sock-puppet account" is an account set up to by a user to assume a false identity, usually with the intention to deceive or mislead others in online communities.

Although Samsung denies the claims, you have to wonder if they've employed such tactics in the past against other rivals such as Apple. I don't think that such a revelation would surprise many.
http://www.patentlyapple.com/patently-apple/2013/04/the-fair-trade-commission-opens-investigation-on-dirty-trickster-samsung.html
1smoking.gif1smoking.gif
post #9 of 29
Quote:
Originally Posted by Selva Raj View Post

Samsung, the Dirty Trickster

The case stems from media reports on a post in an online forum on April 1 that said Samsung hired workers in Taiwan to open several sock-puppet accounts as part of a marketing campaign to promote its new flagship phone Galaxy S4 in the country. The post, which has gone viral online, said OpenTide Taiwan, a marketing company hired by Samsung, asked part-time workers to use multiple propaganda accounts on the Internet to promote the company's phones and attack products from its rivals.

A "sock-puppet account" is an account set up to by a user to assume a false identity, usually with the intention to deceive or mislead others in online communities.

Although Samsung denies the claims, you have to wonder if they've employed such tactics in the past against other rivals such as Apple. I don't think that such a revelation would surprise many.
http://www.patentlyapple.com/patently-apple/2013/04/the-fair-trade-commission-opens-investigation-on-dirty-trickster-samsung.html
1smoking.gif1smoking.gif

Relate to dishnetwork in what ways?
post #10 of 29

This is appleinsider,Relate to dishnetwork in what ways?

post #11 of 29
Am I the only one that thinks these deals and mergers are bad for actual people in the long run?
post #12 of 29
Quote:
Originally Posted by dysamoria View Post

Am I the only one that thinks these deals and mergers are bad for actual people in the long run?

Probably. Unless others dislike capitalism too.
:-)
post #13 of 29
Quote:
Originally Posted by gwmac View Post

Softbank has pretty deep pockets so I think they can easily outbid Dish. They also bring a lot more to the table since they are a cell carrier that successfully competed with two much larger rivals in Japan and managed to steal customers from their rivals.  Dish wants this deal because they have spectrum that they have to use or risk losing. Sprint owns 51% of Clearwire now and are trying to buy the remaining shares so they already have plenty of spectrum as it is with 800/1900/2500
, they do not need the additional Dish spectrum. This is good news for Sprint since it will probably mean even more money from Softbank to aid in building out the LTE network even faster. 
I think dish sees the writing on the wall too. They want to move from television to Internet and cellular- which is the future. Just holding onto tv is a losing proposition. So it's a desperate and needed move on their part. Although not too desperate because its still early.

Side note: didn't Dish buy blockbuster too? Yikes....

2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

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2012 27" iMac i7, 2010 27" iMac i7, 2011 Mac Mini i5
iPad Air, iPad Mini Retina, (2) iPhone 5S, iPod Touch 5
Time Capsule 5, (3) AirPort Express 2, (2) Apple TV 3

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post #14 of 29

In the NY Times article on this proposed merger today, Dish Network is paraphrased as saying "roll television, high-speed Internet and cellphone services into a single package".   Oh joy! More BUNDLES!   Now, to get Sprint cell phone service, you have to bundle in a TV package that includes 10 channels of home-shopping network, 10 channels of "paid programming", 20 channels of sports,  20 channels of foreign language shows, and 20 channels of "public access".  But you will still need to pay extra to get HBO.
 

post #15 of 29
As a shareholder, I'd rather see Sprint purchased by a cell company so as to maintain network and customer focus. If their service starts getting stuffed into bundles, you can bet their technological progresses will grind to a halt... which is the LAST thing they need right now.
post #16 of 29
Quote:
Originally Posted by Andysol View Post

I think dish sees the writing on the wall too. They want to move from television to Internet and cellular- which is the future. Just holding onto tv is a losing proposition. So it's a desperate and needed move on their part. Although not too desperate because its still early.

Side note: didn't Dish buy blockbuster too? Yikes....

I still actually see Apple purchasing Dish at some point .
post #17 of 29
Originally Posted by bmason1270 View Post
I still actually see Apple purchasing Dish at some point .

 

Why? For what purpose?

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply
post #18 of 29
Quote:
Originally Posted by Tallest Skil View Post

Why? For what purpose?
Tax write-off? :O
post #19 of 29
For content delivery for a Apple TV and for the spectrum to also be able to deliver content over cell as well.
post #20 of 29
Originally Posted by bmason1270 View Post
For content delivery for a Apple TV and for the spectrum to also be able to deliver content over cell as well.

 

There's an 800 millisecond delay at the absolute minimum. You'll notice that on phone calls (worse experience) and multiplayer games will be unplayable. So it's no good for Apple's phones.

 

For the Apple TV, the answer isn't "wait at home between 8 AM and 9 PM for some guy to disrupt your life to install a satellite dish on your house". It's Internet. That's how its content will be served.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply
post #21 of 29
No, no, that is where you are wrong.

http://www.smartbrief.com/12/04/11/verizon-deal-illustrates-value-dish-spectrum-holdings#.UW6no4y9KSM

They own valuable cell spectrum right now. They were approved to convert some of their satellite spectrum to cell as well.
post #22 of 29
Quote:
Originally Posted by Tallest Skil View Post

There's an 800 millisecond delay at the absolute minimum. You'll notice that on phone calls (worse experience) and multiplayer games will be unplayable. So it's no good for Apple's phones.

For the Apple TV, the answer isn't "wait at home between 8 AM and 9 PM for some guy to disrupt your life to install a satellite dish on your house". It's Internet. That's how its content will be served.

It is also about the current contracts with the networks that they have so far been unsuccessful at securing.
post #23 of 29
Originally Posted by bmason1270 View Post
It is also about the current contracts with the networks that they have so far been unsuccessful at securing.

 

Sure; I see where you're coming from there. But that won't matter. You can't just buy up negotiations. If Apple bought a telecom, all previous contracts would be null and void past their existing terms. Apple would be forced to see them through to all parties in all previous forms, and then poof, they'd be gone. Start from scratch all over again, except now with expensive satellites and incompetent installation systems.

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply
post #24 of 29
Quote:
Originally Posted by Tallest Skil View Post

Sure; I see where you're coming from there. But that won't matter. You can't just buy up negotiations. If Apple bought a telecom, all previous contracts would be null and void past their existing terms. Apple would be forced to see them through to all parties in all previous forms, and then poof, they'd be gone. Start from scratch all over again, except now with expensive satellites and incompetent installation systems.

Satellites are cheaper than miles and miles of fiber.

Latency is only an issue for head to head online gaming.

Direct TV has been bought and sold three times without such crisis. What it does is get Apple into the door with an established install base.

Owning the spectrum though is the secret sauce. For an Apple TV to be done hypothetically, "the Apple Way" there are to many distribution models and contracts to negotiate. To many variances in delivery service and quality to ensure national coverage. And, to convince them all to hand over the keys to Apple.
post #25 of 29
Originally Posted by bmason1270 View Post
Satellites are cheaper than miles and miles of fiber.

 

And slower. Who says Apple has to buy the fiber? And how is a satellite cheaper?!


Latency is only an issue for head to head online gaming.

 

And phone calls. And sending requests to web servers. And anything using the data.


Direct TV has been bought and sold three times without such crisis.

 

By and to whom? You're sure that they never had to renegotiate? Anyone in the industry would have an escape clause.


 What it does is get Apple into the door with an established install base.

 

They don't want that hardware, they don't want that software, and they don't want that established stuff!

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply
post #26 of 29
Quote:
Originally Posted by Tallest Skil View Post

And slower. Who says Apple has to buy the fiber? And how is a satellite cheaper?!

And phone calls. And sending requests to web servers. And anything using the data.

By and to whom? You're sure that they never had to renegotiate? Anyone in the industry would have an escape clause.

They don't want that hardware, they don't want that software, and they don't want that established stuff!

Satellite per coverage is cheaper.

Who said anything about the satellites in regards to any level of telecom?

They would have two delivery methods. Satellite AND telecom via cellular. This is even before the Dish purchase of Sprint.
post #27 of 29
Originally Posted by bmason1270 View Post
Satellite per coverage is cheaper.

 

Hmm… That makes sense. Thanks.


Who said anything about the satellites in regards to any level of telecom?

You, when you said "buy Dish Network"… 1confused.gif


They would have two delivery methods. Satellite AND telecom via cellular. This is even before the Dish purchase of Sprint.

 

See, they don't want to own a telecom. They don't want a network. They don't want to support others' phones on their network. 

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply

Originally posted by Marvin

Even if [the 5.5” iPhone exists], it doesn’t deserve to.
Reply
post #28 of 29
Quote:
Originally Posted by Tallest Skil View Post

Hmm… That makes sense. Thanks.
You, when you said "buy Dish Network"… 1confused.gif

See, they don't want to own a telecom. They don't want a network. They don't want to support others' phones on their network. 

No, the satellites themselves do not need to be used for telecom. Dish owns extra telecom cell spectrum as well as current satellite spectrum conversion to telecom.

They can lease their spectrum for use to deliver their two way content via cell and simply use satellite to push to home. Two different services meeting home and portable needs.
post #29 of 29
Quote:
Originally Posted by Tallest Skil View Post

Hmm… That makes sense. Thanks.
You, when you said "buy Dish Network"… 1confused.gif

See, they don't want to own a telecom. They don't want a network. They don't want to support others' phones on their network. 

Is it out of the box? Sure but I think there are some unique opportunities to be had here. But, it isn't my $15 Billion either.
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