All Sprint acquisition discussion (was "Japan's Softbank in talks for $12.8 bln Sprint stake")

[marioc21]

Where does it say that?

 

For everything I read, all they did was ADD more cash?

 

I haven't seen anything that says Softbank is pumping less cash into New Sprint.  Only that the offer increases the % of ownership that Softbank will have after it's done.  That moves up to 78% from 70.  And the each sprint shareholder will now get a total of $7.65 per share from the original $7.30.  

[Conan Kudo]

Where does it say that?

 

For everything I read, all they did was ADD more cash?

 

 

How do you figure that?

 

According to the announcement by Sprint/SoftBank, that's the key point on how they raised the extra money.

[PythonFanPA]

Dish's response was rather brief:  "We continue to believe that Sprint has tremendous value. We will analyze the revised SoftBank bid as we consider our strategic options."

[S4GRU]

Network Vision is fully funded now. All this lost extra "investment" was going to buy Clearwire. It's believed that now Sprint will allow its purchase of CLWR to be defeated and SoftBank will directly fight out DISH for outstanding shares and minority control of CLWR. This has no net effect on Sprint investment funds once you remove paying for CLWR.

 

Additionally, this does nothing for SoftBank giving Sprint more funding after the close of sale either through Sprint issuing SoftBank more equity or SoftBank setting up a credit line for Sprint at better terms than what they can get on the market.

 

No need to fear about the SoftBank decrease in investment. DISH couldn't exercise any of these options and would have to raid capex just to pay its debt. SoftBank has the cash and access to funding that Sprint could only have wet dreams about.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

[Ryan]

Will Softbank even want Sprint without Clearwire?

[marioc21]

Network Vision is fully funded now. All this lost extra "investment" was going to buy Clearwire. It's believed that now Sprint will allow its purchase of CLWR to be defeated and SoftBank will directly fight out DISH for outstanding shares and minority control of CLWR. This has no net effect on Sprint investment funds once you remove paying for CLWR.

 

Additionally, this does nothing for SoftBank giving Sprint more funding after the close of sale either through Sprint issuing SoftBank more equity or SoftBank setting up a credit line for Sprint at better terms than what they can get on the market.

 

No need to fear about the SoftBank decrease in investment. DISH couldn't exercise any of these options and would have to raid capex just to pay its debt. SoftBank has the cash and access to funding that Sprint could only have wet dreams about.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

So in regards to CLWR what you're saying is that ultimately we'd wind up with Sprint owning 51% and Softbank directly trying to obtain as much of the remaining 49% as they could get?   

[Deval]

According to the announcement by Sprint/SoftBank, that's the key point on how they raised the extra money.

 

Ahh, missed that bullet point.

[JeffDTD]

 SoftBank has the cash and access to funding that Sprint could only have wet dreams about.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

[S4GRU]

 

 

 

Network Vision is fully funded now. All this lost extra "investment" was going to buy Clearwire. It's believed that now Sprint will allow its purchase of CLWR to be defeated and SoftBank will directly fight out DISH for outstanding shares and minority control of CLWR. This has no net effect on Sprint investment funds once you remove paying for CLWR.

 

 

Additionally, this does nothing for SoftBank giving Sprint more funding after the close of sale either through Sprint issuing SoftBank more equity or SoftBank setting up a credit line for Sprint at better terms than what they can get on the market.

 

 

No need to fear about the SoftBank decrease in investment. DISH couldn't exercise any of these options and would have to raid capex just to pay its debt. SoftBank has the cash and access to funding that Sprint could only have wet dreams about.

 

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

So in regards to CLWR what you're saying is that ultimately we'd wind up with Sprint owning 51% and Softbank directly trying to obtain as much of the remaining 49% as they could get?

Yep. Essentially the same aa what DISH is trying to do. Except SoftBank will not have ridiculous minority shareholder terms expecting a larger voting share and being able to get more voting members to the board than allowed. It allows SoftBank to go as high as necessary to win Shareholder approval without messing up the Sprint purchase price.

 

I read about it in a piece from one of the financial advisors I follow this morning.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

[S4GRU]

Will Softbank even want Sprint without Clearwire?

 

Sprint owns 54% of Clearwire, and it now looks like SoftBank will challenge DISH directly for minority control. So SoftBank is not giving up on Clearwire.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

[Ryan]

Sprint owns 54% of Clearwire, and it now looks like SoftBank will challenge DISH directly for minority control. So SoftBank is not giving up on Clearwire.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

Ok that makes total sense. I'm just afraid that Softbank will back out of the agreement when Clearwire doesn't approve the takeover.  But do you guys think there is a chance that Sprint has the votes? (noob question)

[Deval]

Ok that makes total sense. I'm just afraid that Softbank will back out of the agreement when Clearwire doesn't approve the takeover.  But do you guys think there is a chance that Sprint has the votes? (noob question)

 

I thought with the exception of Crest, all the other minor shareholders approved of Sprint's deal.

[Conan Kudo]

Sprint owns 54% of Clearwire, and it now looks like SoftBank will challenge DISH directly for minority control. So SoftBank is not giving up on Clearwire.

 

Robert via Nexus 7 using Tapatalk 4 Beta

Where did the extra 3.2% come from? Last I heard, Sprint still has only 50.8% of Clearwire.

[S4GRU]

 

 

Ok that makes total sense. I'm just afraid that Softbank will back out of the agreement when Clearwire doesn't approve the takeover. But do you guys think there is a chance that Sprint has the votes? (noob question)

 

 

I thought with the exception of Crest, all the other minor shareholders approved of Sprint's deal.

No. I think the only shareholders that have publicly supported Sprint's bids have been the original investment consortium (ala Intel, Comcast, Bright House, etc.).

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

[S4GRU]

 

 

Sprint owns 54% of Clearwire, and it now looks like SoftBank will challenge DISH directly for minority control. So SoftBank is not giving up on Clearwire.

 

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

Where did the extra 3.2% come from? Last I heard, Sprint still has only 50.8% of Clearwire.

I recall 54% share owner and just under 51% voting control.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

[chaddy0122]

No. I think the only shareholders that have publicly supported Sprint's bids have been the original investment consortium (ala Intel, Comcast, Bright House, etc.).

 

Robert via Nexus 7 using Tapatalk 4 Beta

The 2nd biggest share holder, a hedge fund controlled by Paulson (mention in an earlier reply) also approves of the new bid by Softbank.

[S4GRU]

 

 

Sprint owns 54% of Clearwire, and it now looks like SoftBank will challenge DISH directly for minority control. So SoftBank is not giving up on Clearwire.

 

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

Ok that makes total sense. I'm just afraid that Softbank will back out of the agreement when Clearwire doesn't approve the takeover. But do you guys think there is a chance that Sprint has the votes? (noob question)

Since the SoftBank/Sprint purchase will close much sooner than probably even a new Clearwire deal can be voted on, there's little reasoning to worry about this.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

[Ryan]

I recall 54% share owner and just under 51% voting control.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

So could we estimate what percentage Sprint would get in a vote including the original consortium?

[Ryan]

The 2nd biggest share holder, a hedge fund controlled by Paulson (mention in an earlier reply) also approves of the new bid by Softbank.

 

I meant the Dish offer for Clearwire. Sorry if it was a bit off topic guys...

[marioc21]

Sprint owns 54% of Clearwire, and it now looks like SoftBank will challenge DISH directly for minority control. So SoftBank is not giving up on Clearwire.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

The question then becomes to what end? Once they had enough voting power would they move to merge CLWR into Sprint? CLWR would still need a large cash infusion if they keep it as a separate company.  Would CLWR sign some sort of network sharing deal with Sprint? Lots of questions left.   

[S4GRU]

 

 

Sprint owns 54% of Clearwire, and it now looks like SoftBank will challenge DISH directly for minority control. So SoftBank is not giving up on Clearwire.

 

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

The question then becomes to what end? Once they had enough voting power would they move to merge CLWR into Sprint? CLWR would still need a large cash infusion if they keep it as a separate company. Would CLWR sign some sort of network sharing deal with Sprint? Lots of questions left.

It doesn't really matter. I could see them merging with the New Sprint, being bought out by the New Sprint, I could also see SoftBank or new Sprint providing more equity funding, or even SoftBank buying out New Sprint's shares in CLWR and keep it to itself.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

[Ryan]

The question then becomes to what end? Once they had enough voting power would they move to merge CLWR into Sprint? CLWR would still need a large cash infusion if they keep it as a separate company.  Would CLWR sign some sort of network sharing deal with Sprint? Lots of questions left.   

 

Would it really matter once Softbank owns both companies?

[marioc21]

It doesn't really matter. I could see them merging with the New Sprint, being bought out by the New Sprint, I could also see SoftBank or new Sprint providing more equity funding, or even SoftBank buying out New Sprint's shares in CLWR and keep it to itself.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

 

Would it really matter once Softbank owns both companies?

 

 

True enough.  Once Softbank controls both it really doesn't matter. 

[JeffDTD]

I would love to see clear become/remain a wholesale access messiah to mvno's and regionals... it goes against everything Ergen believes in and is good for the consumer

 

Sent from my Note II. Its so big.

 

[Deval]

I would love to see clear become/remain a wholesale access messiah to mvno's and regionals... it goes against everything Ergen believes in and is good for the consumer

 

Sent from my Note II. Its so big.

 

The biggest problem with wholesale is the revenue stream.