Sprint/Clearwire Acquisition Discussion (Formerly: Dish offer to acquire Clearwire for $4.40 per share in cash.)

[bigsnake49]

So, let back track on this. Let's say that Softbank acquires Sprint and Dish back tracks on the board seats and the veto power and acquires 25+% of The outstanding shares. Sprint waits until after November 28, 2013 and then acquires the rest of the shares from the strategic investors. What recourse does Dish have, other than making noise? I guess they could acquire the outstanding 30% of Sprint shares and make noise there. I know that Sprint wants T-Mobile so Dish could go after T-Mobile and they could make a lot of noise about diminshing competition if Sprint goes after T-Mobile. So, over all I think it is in Sprint's best interest for Dish to have Clearwire minus the BRS spectrum. That way Sprint can say there is a viable 4th network if they decide to go after T-Mobile.

[ericdabbs]

So, over all I think it is in Sprint's best interest for Dish to have Clearwire minus the BRS spectrum. That way Sprint can say there is a viable 4th network if they decide to go after T-Mobile.

 

If Dish were to acquire Clearwire completely, why would Sprint still have the right to keep all of the BRS spectrum?  Charlie is not dumb and knows that BRS spectrum is more valuable and doesn't have to deal with spectrum leases like in EBS.  Charlie wouldn't let Hesse have that since Charlie believes in a zero sum game. 

 

Sprint needs Clearwire and if it means they have to wait for the end of November clock to do so they will to modify the rules.  Son wants all that 2.5 GHz spectrum to help build a strong Sprint network to compete on LTE just like in Japan.  I don't see Softbank/Sprint give up that easily on Clearwire.

[S4GRU]

So, let back track on this. Let's say that Softbank acquires Sprint and Dish back tracks on the board seats and the veto power and acquires 25+% of The outstanding shares. Sprint waits until after November 28, 2013 and then acquires the rest of the shares from the strategic investors. What recourse does Dish have, other than making noise? I guess they could acquire the outstanding 30% of Sprint shares and make noise there. I know that Sprint wants T-Mobile so Dish could go after T-Mobile and they could make a lot of noise about diminshing competition if Sprint goes after T-Mobile. So, over all I think it is in Sprint's best interest for Dish to have Clearwire minus the BRS spectrum. That way Sprint can say there is a viable 4th network if they decide to go after T-Mobile.

 

Your point is based on the supposition that all Charlie Ergen wants is the Clearwire network and EBS spectrum.  However, his actions point to something much grander.  I feel that if that is all Charlie wanted, Sprint and SoftBank would have given it to him.  He wants that at unreasonable terms or much more.  Either he wants the BRS, or he wants the entirety of EBS/BRS...which is essentially all of Clearwire.

 

And I do agree with you that Dish has no position here.  The only thing they can do is delay and cause a ruckus.

 

Robert

[bigsnake49]

If Dish were to acquire Clearwire completely, why would Sprint still have the right to keep all of the BRS spectrum?  Charlie is not dumb and knows that BRS spectrum is more valuable and doesn't have to deal with spectrum leases like in EBS.  Charlie wouldn't let Hesse have that since Charlie believes in a zero sum game. 

 

Sprint needs Clearwire and if it means they have to wait for the end of November clock to do so they will to modify the rules.  Son wants all that 2.5 GHz spectrum to help build a strong Sprint network to compete on LTE just like in Japan.  I don't see Softbank/Sprint give up that easily on Clearwire.

 

 

If Dish were to acquire Clearwire completely, why would Sprint still have the right to keep all of the BRS spectrum?  Charlie is not dumb and knows that BRS spectrum is more valuable and doesn't have to deal with spectrum leases like in EBS.  Charlie wouldn't let Hesse have that since Charlie believes in a zero sum game. 

 

Sprint needs Clearwire and if it means they have to wait for the end of November clock to do so they will to modify the rules.  Son wants all that 2.5 GHz spectrum to help build a strong Sprint network to compete on LTE just like in Japan.  I don't see Softbank/Sprint give up that easily on Clearwire.

 No, the assumption was that that Dish gets the shares that are not owned by Sprint and the strategic investors.

[Rawvega]

I know that Sprint wants T-Mobile so Dish could go after T-Mobile and they could make a lot of noise about diminshing competition if Sprint goes after T-Mobile.

 

Well there were allegedly talks held between Sprint and t-mobile. So it may be fair to say that the Daniel Hesse led Sprint was interested in t-mobile. However, is there anything to indicate that a Masayoshi Son led Sprint would have that same interest level in t-mobile? Outside of Sprint, his biggest concern at the moment appears to be Clearwire.

 

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[bigsnake49]

Your point is based on the supposition that all Charlie Ergen wants is the Clearwire network and EBS spectrum.  However, his actions point to something much grander.  I feel that if that is all Charlie wanted, Sprint and SoftBank would have given it to him.  He wants that at unreasonable terms or much more.  Either he wants the BRS, or he wants the entirety of EBS/BRS...which is essentially all of Clearwire.

 

And I do agree with you that Dish has no position here.  The only thing they can do is delay and cause a ruckus.

 

Robert

 

 

Your point is based on the supposition that all Charlie Ergen wants is the Clearwire network and EBS spectrum.  However, his actions point to something much grander.  I feel that if that is all Charlie wanted, Sprint and SoftBank would have given it to him.  He wants that at unreasonable terms or much more.  Either he wants the BRS, or he wants the entirety of EBS/BRS...which is essentially all of Clearwire.

 

And I do agree with you that Dish has no position here.  The only thing they can do is delay and cause a ruckus.

 

Robert

 Oh he wants somebody to host that spectrum. Clearwire will need a lot more sites to host his spectrum+clearwire spectrum nationwide. He needs a true nationwide carrier to deploy that spectrum, since he only has 3 and a 1/2 years to deploy or lose that spectrum.

[bigsnake49]

Well there were allegedly talks held between Sprint and t-mobile. So it may be fair to say that the Daniel Hesse led Sprint was interested in t-mobile. However, is there anything to indicate that a Masayoshi Son led Sprint would have that same interest level in t-mobile? Outside of Sprint, his biggest concern at the moment appears to be Clearwire.

 

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Yes.

[Rawvega]

Yes.

Such as?

 

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[bigsnake49]

Such as?

 

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I can't give out my sources, but there is work going on right now on how to integrate the two networks from a technical and business back end standpoint. Does that mean that the merger will happen? No, but there is strong interest.

[S4GRU]

 Oh he wants somebody to host that spectrum. Clearwire will need a lot more sites to host his spectrum+clearwire spectrum nationwide. He needs a true nationwide carrier to deploy that spectrum, since he only has 3 and a 1/2 years to deploy or lose that spectrum.

 

Definitely.  And this all gets back to Charlie.  The persona, the man.  Clearwire wanted to divest spectrum for a long time.  Sprint has wanted to host somebody's network for a long time.  Yet, Dish couldn't make a reasonable deal.  Charlie was playing games.  He was trying to get AT&T, Tmo and Sprint get into a bidding war to host his network.  It didn't materialize.  He is playing games with the future of his company.  He is about to lose big time.

 

The time to negotiate has passed.  Neither Sprint/SoftBank or Clearwire are going to now.  Also, Charlie is getting to the point where no one in the wireless indistry likes him or trusts him.  His only chance is an outright purchase now.  His strategy is to annoy SoftBank to the point of giving up on the U.S. market.  Charlie knows that all future Sprint bids for Clearwire come from SoftBank money.  SoftBank will have to fund it.  Sprint is nearing the end of the line of what it can offer.  So basically, the only way Dish can walk away with Clearwire right now is to get SoftBank to back down.  To say, "the American market is not worth all this trouble."

 

That's why Charlie is being so aggressive, boisterous and annoying.  I think this is the only strategy he has left.  Get Masayoshi Son to get tired of swatting at flies.  This could backfire, though.  Many assume Son is not willing to put a whole lot more money on the table for Sprint or Clearwire.  They may be wrong.  Son and SoftBank may even be prepared to overpay.  Masayoshi may have a lot of fight left in him.  

 

If I were Masayoshi Son, I would bury Charlie Ergen right now.  I'd meet with Crest and Mount Kellett and ask them what price would it take to support Sprint/SoftBank deal for Clearwire and match it 48 hours before June 13th shareholders meeting.  Even if it was $7-$8.  SoftBank will gain most of the overpayment back in economies of scale on their TDD-LTE 2600 ecosystem.  And SoftBank is likely much more concerned with a long term gain.  Yes, that's what I'd do.  But I would probably be bankrupt in 2 years too.

 

Robert

[Rawvega]

 

 

I can't give out my sources, but there is work going on right now on how to integrate the two networks from a technical and business back end standpoint. Does that mean that the merger will happen? No, but there is strong interest.

Gotcha. Intriguing stuff indeed!

 

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[ericdabbs]

Either way the first thing I want Sprint to deal with is the Clearwire situation.  Get that out of the way with Clearwire under their belt and begin integrating 2.5 GHz TD-LTE into the Sprint network ASAP.

 

After a few years down the road when Sprint and Tmobile are almost complete with their Network Vision projects and Tmobile has finished integrating MetroPCS into their network, Sprint and Tmobile can begin talking about any possible merger if there is mutual interest.  The key is both Sprint and Tmobile need to have sufficient LTE networks up and running that covers their 3G footprint and that will certainly take another 2-3 years.

 

If Sprint does have a specialty group now within the company to begin thinking of how to integrate Sprint and Tmobile from a technical and business standpoint then kudos to them to think ahead.  Planning is very important and the last thing any of us want is another Sprint/Nextel type of merger.

[ChadBroChillz]

 No, the assumption was that that Dish gets the shares that are not owned by Sprint and the strategic investors.

 

I do not believe that assumption will hold. If Sprint's bid is rejected, I believe the financing turns into shares for sprint, which would give it 68% of the vote. That would mean 32% of the vote is not controlled by Sprint. Crest is going to oppose every deal to push the price further. Taran Asset Management has already said they are looking at 5-7 dollars per share. I also believe Mount Kellett Group will come out agains Dish's offer, which means Dish could never get the minimum 25% they need.

[IamMrFamous07]

Either way the first thing I want Sprint to deal with is the Clearwire situation.  Get that out of the way with Clearwire under their belt and begin integrating 2.5 GHz TD-LTE into the Sprint network ASAP.

 

After a few years down the road when Sprint and Tmobile are almost complete with their Network Vision projects and Tmobile has finished integrating MetroPCS into their network, Sprint and Tmobile can begin talking about any possible merger if there is mutual interest.  The key is both Sprint and Tmobile need to have sufficient LTE networks up and running that covers their 3G footprint and that will certainly take another 2-3 years.

 

If Sprint does have a specialty group now within the company to begin thinking of how to integrate Sprint and Tmobile from a technical and business standpoint then kudos to them to think ahead.  Planning is very important and the last thing any of us want is another Sprint/Nextel type of merger.

 

To be honest I doubt the FCC would approve a tmobile and sprint merger. I can definitely see softbank try and get that done but that would be to much spectrum and the big 2 will throw a big fit. Sprint/Softbank/Tmobile would probably have to sell off some spectrum

[Deval]

To be honest I doubt the FCC would approve a tmobile and sprint merger. I can definitely see softbank try and get that done but that would be to much spectrum and the big 2 will throw a big fit. Sprint/Softbank/Tmobile would probably have to sell off some spectrum

 

I might be mistaken, but Verizon and/or AT&T own much more spectrum than Sprint + T-Mobile in some areas.

[S4GRU]

I do think the FCC would approve a Sprint/T-Mobile merger.  Some divestiture could be required.  This is nothing like the AT&T/Tmo deal.

 

Robert

[IamMrFamous07]

I might be mistaken, but Verizon and/or AT&T own much more spectrum than Sprint + T-Mobile in some areas.

 

Yeah but let's say if it does go through and keep in mind sprint and tmobile are pursuing the 600mhz spectrum

 

So their spectrum holdings will be 600mhz/800/1900/1700/2500 I mean that would be amazing but I don't see that happening. Plus how would sprint and tmobile consolidate the network so sprint doesn't repeat another iden crisis

[ChadBroChillz]

I still cannot support the Tmobile/Sprint merger, I would hate to see another nationwide network being torn down. I kinda wish Sprint was forced to sell the lease rights to the towers, so we could possibly seen some new competition. I do believe their is enough spectrum between all the carriers to have 5 national competitors. Also once a network does down, it will never come back and the cost for new towers seems to great for new entries into the wireless game. I guess I am really just afraid of us turning into Canada South.

[ericdabbs]

I still cannot support the Tmobile/Sprint merger, I would hate to see another nationwide network being torn down. I kinda wish Sprint was forced to sell the lease rights to the towers, so we could possibly seen some new competition. I do believe their is enough spectrum between all the carriers to have 5 national competitors. Also once a network does down, it will never come back and the cost for new towers seems to great for new entries into the wireless game. I guess I am really just afraid of us turning into Canada South.

 

Having 3 major carriers in the US would suck after seeing how much Canadian cell phone service cost.  I mean as much as I like Sprint, I like to have choice in case Sprint does not work for me.

 

I know Tmobile can be a viable competitor if only it had some low band spectrum which the 600 MHz would help with that to help with coverage.  Maybe Leap, US Cellular and Dish can team up to be competitor in case a Sprint and Tmobile merger were to occur.

[Fraydog]

I still cannot support the Tmobile/Sprint merger, I would hate to see another nationwide network being torn down. I kinda wish Sprint was forced to sell the lease rights to the towers, so we could possibly seen some new competition. I do believe their is enough spectrum between all the carriers to have 5 national competitors. Also once a network does down, it will never come back and the cost for new towers seems to great for new entries into the wireless game. I guess I am really just afraid of us turning into Canada South.

 

If this were to be approved, we're talking protections to make sure this doesn't become Canada South would probably be instituted on to prevent a redux of the Canadian market.  As far as Sprint and T-Mobile's technical side, I think the two CDMA and UMTS networks could be run side to side with minimal cost addition, converging data on LTE. 

 

AT&T and T-Mobile would have created a singular monopoly on the global standard all phones outside of most of the US use, that being GSM/3GPP standards. To say that would have been toxic would be a gross understatement. 

 

I think the US should seriously consider a system wide reexamination of spectrum policy IMO, I think the point Randall Stephenson makes about companies being able to lease spectrum forever is exactly why the FCC and other regulatory bodies should run the other direction. I would lease spectrum on much shorter terms and have it be something that can be reallocated on a national scale. 

 

I'd also see what could be done to merge spectrum blocks together nationally for more contiguous partitons of spectrum nationwide. I know I may be in the minority here but I'm not a huge fan of the regional carriers. In a data centric world they can't compete without the economies of scale large global operators possess. I see ATNI here in Southern Illinois as a sad example of that. I just wish Sprint could have got them before AT&T did.  

[DaQue]

isn't all this Sprint/T-Mobile merger speculation a bit off topic? Anway... The bid seems to me to be just to throw a monkey wrench into the Sprint/Softbank merger. Hows that going?

[nebody00]

isn't all this Sprint/T-Mobile merger speculation a bit off topic? Anway... The bid seems to me to be just to throw a monkey wrench into the Sprint/Softbank merger. Hows that going?

http://news.cnet.com/8301-1001_3-57587321-92/sprint-dishs-offer-to-buy-clearwire-violates-state-law/

 

So Dish wants to buy a minority stake and change the voting rights of the majority holder?

Edited June 4, 2013 by nebody00

[bigsnake49]

We have exhausted the new Dish offer and Sprint's claim that it violates Delaware law and the AHA. I mean we have been talking about it for couple of days straight. As I said couple of pages ago, if Sprint is serious about going after T-Mobile, then it is in their best interest to create the appearance that Dish could be a viable 4th nationwide competitor by divesting Clearwire's network and the leased spectrum to Dish.

Edited June 4, 2013 by bigsnake49

[bigsnake49]

Just remember that the Dish offer is opposed not only by Sprint but by the other strategic investors, namely cable providers. Not only do they compete against Dish in the broadcast video arena, but if the Dish bid goes through, they will compete against them in the fixed broadband, video on demand and OTT video. They have a lot to lose if Dish prevails.

[jonathanm1978]

When are we going to see a vote on the Sprint/Softbank plan? I know it's here somewhere but can't remember where...isn't it coming up around the middle of this month (10th/12th?)