Dish Bids $25.5 Billion for Sprint as Pay TV Slows, Wireless Consolidates
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Dish Network, Charlie Ergen’s satellite-TV company, has made an unsolicited $25.5 billion offer for Sprint Nextel, challenging a bid by Japan’s Softbank for the third-largest U.S. wireless carrier.
For Mr. Ergen, the billionaire founder of Dish, the goal is to break into the wireless business — part of a plan to decrease its reliance on the slowing satellite-TV market. Dish’s move is also the latest twist in a frenzy of consolidation for the U.S. wireless industry. Smaller carriers are seeking out merger partners to help wage a stronger attack against the two dominant competitors, Verizon Communications and AT&T.
Sprint investors would get $7 a share, consisting of $4.76 in cash and stock representing about 32% of the combined company, Englewood, Colorado-based Dish said today. That means the offer is $17.3 billion cash and $8.2 billion stock, and 13% more than Sprint’s April 12 closing price. Sprint rose as high as $7.24 in early U.S. trading.
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