Reuters - Video

EDITION: U.S. | U.K. | IN

Breakingviews

Breakingviews: SoftBank leads in Sprint race

Tuesday, Apr 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.

▲ Hide Transcript

View Transcript

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.

Breakingviews: SoftBank leads in Sprint race

Tuesday, Apr 30, 2013 - 03:02

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)

Moving Pictures »

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Wed, Jul 02, 2014 - (3:25)

A long search for refuge A long search for refuge

Fri, Jun 20, 2014 - (3:04)