Seeking Alpha

Sprint (S +0.8%) has formed a special committee to review Dish's (DISH -0.1%) merger offer,...

Sprint (S +0.8%) has formed a special committee to review Dish's (DISH -0.1%) merger offer, David Faber reports. He adds there's plenty of speculation about the $9B+ in new debt that would need to be raised by Dish, and which would leave the combined company with $44B in debt. Also, much like Dish's offer for Clearwire, some wonder if the Sprint offer is simply a negotiating tactic to reach some other kind of deal (presumably involving Dish's 4G spectrum). (more on Sprint/Dish)
From other sites
Comments (2)
  • AggGrow
    , contributor
    Comments (210) | Send Message
    So, I'm out. It's been a good ride, but the risk is simply too high for now. Ready to jump back is as soon as things look more directional. I knew the Dish deal was un-doable because of debt, but I had no idea it would reach $44B. I'm sure Hesse wants to tell Dish to get lost, but he can't and has to make a thorough DD.


    I continue to believe that Sprint + Softbank + Clearwire = the #1 SP in the world. Painful.
    18 Apr 2013, 12:43 PM Reply Like
  • Headcoach
    , contributor
    Comments (431) | Send Message
    Yes...but now add Verizon's request to Clearwire to buy some of their spectrum. Which we both know this will not happen. Why?


    Clearwire's business model is to lease wholesale space on their 4G TDD super fast network with download speeds of 100+ mbps.


    Which is something DISH, Softbank, Sprint and now Verizon wants to get their hands on. But because Sprint owns 50% of Clearwire, Sprint will not allow Clearwire to sell it's spectrum to Verizon. (remember the business model)


    This means that Verizon will have to deal with Sprint because Sprint holds all the cards at 50%...get it!
    18 Apr 2013, 01:56 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs