Sprint Reportedly Bowing Out of T-Mobile Bid (was "Sprint offer" and "Iliad" threads)

[WiWavelength]

Yeah. $10 billion offered in "synergies" (instead of cash).

 

 

Once Iliad takes over T-Mobile, Dr. Alan Parsons will replace Neville Ray.  Achieving those synergies will be the Alan Parsons project.

 

AJ

[xcharles718]

Back on topic, I doubt that Illiad ever intended for this bid to be accepted, but it does introduce another possible buyer for TMUS, which will have an effect on any future bid by Softbank from a regulatory perspective. Son will have to see if this pushes down the chance of the deal getting approved to the point that it would no longer be worthwhile. 

 

DT has no interest in remaining in the U.S. market and would be open to outside investment; as for how much Illiad is willing(and able to) pay & if other buyers arise, time will tell.

It would be interesting to see how a new majority shareholder that isn't Softbank would affect the proposed joint-spectrum venture.

[utiz4321]

Iliad is only offering $15 billion in cash for 56.6% of T-Mobile US at $33 a share; no premium at all. I do not see how T-Mobile's board would really want this offer.

 

http://online.wsj.com/articles/frances-iliad-makes-bid-for-t-mobile-us-1406822189

 

And here's a chart for subscriber numbers (not sure if current):

 

Why would Iliad offer a premium? The only other serious interested parties are US telecoms that would or have been blocked by US regulators. Iliad is looking to get a deal because the companies that value T-Mobile are prohibited from purchasing them.

[lilotimz]

Why would Iliad offer a premium? The only other serious interested parties are US telecoms that would or have been blocked by US regulators. Iliad is looking to get a deal because the companies that value T-Mobile are prohibited from purchasing them.

 

I agree.

 

DT wants out and someone wants in and have a relatively painless route to do so. If this Iliad can support tmobile and allow them to more effectively roll out their network upgrades then it's better for the industry as a whole. Competition is good for us end users and keeps the rest of the companies on their toes so they don't start slacking on deploying new technologies. 

[jwang]

It's good thing that we have some one else to make a move.

 

Now it's the turn of Softbank to give clear voice about if they want to buy it or not. Either way should be fine.

And I always think Sprint will do better if they can merge with DISH. And the combined company should go after those small regional cable providers for their resource on broadband back haul and existing customers. It's the way VZW/ATT grew to this size.

 

The FCC will have no reason to block Sprint and DISH to merge as they don't have any services overlapped.

 

And you can tell the probability that Softbank chooses to walk away from Tmobile became bigger and bigger. DISH should be the better choice for Sprint. 

[JimBob]

Why would Iliad offer a premium? The only other serious interested parties are US telecoms that would or have been blocked by US regulators. Iliad is looking to get a deal because the companies that value T-Mobile are prohibited from purchasing them.

It's mergers and acquisitions season. Sprint/SoftBank is the main buyer right now, but T-Mobile can have various other suitors, such as DISH. Considering current momentum and industry consolidation, DT would be foolish to sell at market price.

[cdk]

Please let the French have them. Then by USCC.

[IamMrFamous07]

Sprint can still do a joint venture with tmobile for wireless auctions and maybe they can roam off each other. Buy Uscc, and do a spectrum hosting deal with Dish.

[bretton88]

USCC is certainly a prime candidate for a buyout with great synergies, but the Carlson Family has shown zero interest in a buyout.

[IamMrFamous07]

USCC is certainly a prime candidate for a buyout with great synergies, but the Carlson Family has shown zero interest in a buyout.

If the price is right...

[jroepcke51]

USCC is certainly a prime candidate for a buyout with great synergies, but the Carlson Family has shown zero interest in a buyout.

Is it a c corp or an s corp?

[tyboxer12]

You may think you didn't. If I drove around Ocala with a Triband device, is 2Mbps going to be the typical result? If not, you cherry picked the results to make a point.

 

Also, you also know that in Jacksonville and Tampa, a Sprint Triband device holder would likely have an equal or better result than a Tmo subscriber. Agreed? In Tampa and JAX, Sprint LTE coverage is better indoors and outdoors than Tmo. And Sprint on B41 meets or exceeds Tmo speeds.

 

VZW is a way better provider in my area than AT&T. However, I can go around my area in real places and make a narrative that shows AT&T is better. And I bet there are some people in my area who really have usage patterns that would appear that AT&T is superior and VZW is awful. L

 

Sprint LTE is very competitive in Florida in places with 2 LTE bands, and among the best in places with 3 bands. And there will always be places they aren't the best. But in Florida currently, there are far more square miles where Tmo is not good or even available, but Sprint is. And that's a fact, Jack. Even if it's not at your house.

 

Robert via Nexus 5 using Tapatalk

 

 

I can back you up that B26-25 duo are very compareable in FL too.

[Zookeeper63]

Well, I will come out and say that I am in favor of this Iliad bid for a majority stake in T-Mobile.

 

And since Deutsche Telekom will still retain a minority share, the French and Germans will be working together.  They can just rebrand it to Vichy Mobile.

 

 

AJ

Well played...

[JimBob]

Iliad's offer may have been a power-play to scare its French competitors.

 

http://www.reuters.com/article/2014/08/01/us-tmobile-iliad-banks-idUSKBN0G146R20140801

Shares in rival French companies Bouygues and Orange also fell on speculation that Iliad's interest in a U.S. deal meant it might not seek a tie-up at home that could ease competition in a cut-throat market.

 

"The offer may even not be meant absolutely seriously," said Frank Heise, fund manager at Metzler Asset Management and an owner of Iliad shares. "Iliad wants to exert pressure on the players in France. It wants to show Orange and Bouygues that it can go it alone and does not necessarily need them."

[S4GRU]

Iliad's offer may have been a power-play to scare its French competitors.

 

http://www.reuters.com/article/2014/08/01/us-tmobile-iliad-banks-idUSKBN0G146R20140801

Let them eat cake! Or perhaps, Orange.

 

Robert via Samsung Note 8.0 using Tapatalk Pro

[jamisonshaw125]

Can someone email Dan Hesse or Masa and tell him to just drop out of the race and focus on his big purchase. This is all getting a little cray cray, and only because TMO is having a slight surge in customer adds. 

[bigsnake49]

OK, so the offer has been rejected. So what does Iliad do now? They have to up their offer to close to $40/share. Let's say they acquire T-Mobile. They will be saddled with debt for the cash portion of the offer. The auctions are coming up. Can the new company afford to play? It's going to be expensive. I don't think they can afford to play in both the AWS-3 and the 600MHz auction.

 

Let's say that T-Mobile remains independent. Then all the pump and dump schemes have to stop. The only way they made money this quarter was because of the $731M in spectrum they got out of Verizon. DT cannot afford to not make money. So how do they get money out of their investment? Spinoff? Issuance of shares? Dish?

 

I think it pretty much kills the Sprint/T-Mobile merger. Softbank waited too long just like Sprint before AT&T made an offer. The two companies can still share networks/ jointly bid for spectrum, etc.

 

High stakes poker is getting played boys. Have a seat and enjoy the show.

[sbolen]

Iliad's offer may have been a power-play to scare its French competitors.

 

And just like that, S is starting it's rebound. Glad I was able to buy during the panic.

[sbolen]

More, from the NYT:

 

From the point of view of Deutsche Telekom, which owns two-thirds of T-Mobile US, Sprint’s $40 a share for the entire company looks better on paper than a $33 bid for just over half, even if – with synergies – it’s worth some $36.20 a share overall, as Iliad claims. But Iliad’s offer could heighten the regulatory drama. As the epic unfolds, it may become harder to imagine Sprint walking away victorious.

[mhammett]

http://www.telecomramblings.com/2014/08/t-mobile-gets-bid-japan/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+TelecomRamblings+%28Telecom+Ramblings%29

[JimBob]

Q&A: Iliad’s Founder Explains His T-Mobile Bid

 

http://blogs.wsj.com/corporate-intelligence/2014/08/01/qa-iliads-founder-explains-his-audacious-t-mobile-bid/

 

[dnicekid]

Just keep moving forward, announce sprint/Tmo/dish merger, give this company spectrum, unwanted towers and some subscribers.. Doj has 4 players sprint gets What it wants and Comcast is out..

 

If Comcast enters the game they will be an expensive problem.. Those WiFi hotspots are all over my area.

[mhammett]

I am with robert! Let the Frenchies have it, with the cca and all the partners sprint and the nv 2.0 or as some call it 2.5. I think sprint is in a great position to go against att and verizon. It maybe a year or two before people start noticing how great sprint is, but still.

 

LET THE FRENCHIES Have it

My sentiments exactly. They don't need anything from T-Mobile's network and have far better partnerships.

[mhammett]

It's good thing that we have some one else to make a move.

 

Now it's the turn of Softbank to give clear voice about if they want to buy it or not. Either way should be fine.

And I always think Sprint will do better if they can merge with DISH. And the combined company should go after those small regional cable providers for their resource on broadband back haul and existing customers. It's the way VZW/ATT grew to this size.

 

The FCC will have no reason to block Sprint and DISH to merge as they don't have any services overlapped.

 

And you can tell the probability that Softbank chooses to walk away from Tmobile became bigger and bigger. DISH should be the better choice for Sprint.

They will have massive amounts of spectrum, which is bad from a regulatory perspective.

 

I just want Dish to go away.

[CaryTheLabelGuy]

My opinion on this merger (SoftBank/Sprint and TMO) has drifted back into the "against" column.

 

Sprint has much more spectrum (high and low) and with the partnerships, much better native coverage.

 

If Masa is serious about competing against the duopoly, he's going to have to do this the hard way and earn the respect. Spend some of that M&A money on upping their coverage game, work as hard as they can on deploying 8t8r B41 in as many urban and suburban markets as possible as well as B26, then go hard on "real" marketing explaining why Sprint's network is newer and better (I.e. explain what triband is, how it works and why it is better), once they've completed the upgrades for each major market. Once they have their ducks in a row and are actually competitive/disruptive both perceived and actual, the customers will come in droves. Also get in bed with Dish and host their spectrum as well.

 

Masa doesn't need TMO to do any of the above and there really isn't a damn thing the duopoly can do to stop Masa and certainly isn't anything TMO can do to stop him either. It'll take a little while, but guess what, so will this merger if allowed to pass muster.

 

My .02 cents.

 

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