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Breakingviews: SoftBank leads in Sprint race

Tuesday, April 30, 2013 - 03:02

April 30 - Reynolds Holding and Robert Cyran discuss why the Japanese internet firm's $20.1 billion offer for Sprint Nextel should top Dish Network's $25.5 billion bid.

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We'll be exciting race for sprint the US Telecom seems to be tightening. With Japan's Softbank refusing to -- twenty billion dollar offer. Despite the fact that rivaled DISH Network is offering 20 more than 25 billion felt -- Point five billion sounds to me how come a lot higher than twenty billion why is it not necessarily better off -- first and you can't quite compare these offers on paper because. If they're they're offering different sorts of things that Softbank is offering take part of the company. Right calm quiet about the company inject capital. What -- is doing is they're saying well we're gonna give me cash and you can impart the combined company of dish and just. So -- they're they're kind of complex -- -- both buying pieces pieces activity but this will be the growth by about 70%. A little bit editions by a little bit more. Sprint. -- but the main thing is that sprint almost went bankrupt. Couple years ago and so's for investors should be well aware of the problems of having too much debt laden -- was exactly and that's exactly what -- proposes to -- there -- about forty billion dollars of net -- on the company. -- can leave the company -- has all the bankers this topic is doing the office Softbank is actually injecting capital into and soft and to spread so in other words as early end up and healthier. But -- exactly Salt -- saying you know you can have a healthier company or dish is saying you can have a little cash and and I'm healthier company and the question is do investors you know yeah investors which wonder they preferred. I would argue they probably prefer and a healthier company just because that the -- lesson in the past has been that -- -- Strategically. What does each of these potential buyers look to do -- sprint as one. You know make this one make more sense than the other. Well I mean Softbank what they're doing is they base don't make -- America and -- they've had good luck in Japan owning a network and they wanted to -- the same sort of thing here. They they think if you inject capital into spring you can make it a viable competitor to Verizon and AT&T the two giants. Dish on the other hand what they're doing is they own a big chunk of satellite spectrum they bought it in a bankruptcy a couple years ago. And what they think is that. They can inject this into sprint and that will make Tom -- help the company in the future and principle I'm more excited to freezing on phones. It's very complicated situation next no we mentioned Verizon AT&T I mean I was a little worried or have concerns or even looking at this deal as some kind of well I mean -- out of -- -- they're looking -- -- -- I can imagine if if I -- -- -- -- -- -- probably prefer -- -- -- just because. You know if you if you're competing against a smaller company wanted to be is it is financially unstable as possible. If you've got a company which has a lot of cashing in -- -- can invest in the network and -- -- more viable competitive plus interest in the difference in those two loan offers will be keeping an eye on that deal and stay tuned tomorrow for more breaking news.

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Breakingviews: SoftBank leads in Sprint race

Tuesday, April 30, 2013 - 03:02