DISH Network announced today that they have submitted a merger proposal to Sprint with a value of $25.5 billion. The offer consists of $17.3 billion in cash and another $8.2 billion in stock. According to DISH Network’s news release, the cash portion of the deal represents an 18% premium over the offer currently on the table from SoftBank. DISH Network also points out that the ownership proposal for stockholders is a better deal as Sprint stockholders will end up with a 32% in the entire merged company whereas SoftBank is only offering a 30% stake in the Sprint portion of the company if they buy it up. According to DISH Network, the merger with Sprint will create a unique company that can offer customers video, broadband, and voice services both in-home and out-of-home.
Keep in mind Sprint is also in the process of acquiring full ownership of Clearwire, but that deal is contingent on the closing of the SoftBank deal. With a competing offer now on the table, it is not clear how that might impact the acquisition of Clearwire. Sprint has not yet issued a response to this latest offer. Hit the break for the full press release issued by DISH Network. » Read the rest