Softbank: No change in Sprint Nextel offer in response to Dish Network

Softbank CEO slams Dish offer as based on 'imaginary' numbers, says Softbank deal would bring more buying power and synergy

Softbank's CEO, in a battle with Dish Network to acquire U.S. mobile operator Sprint Nextel, slammed a US$25.5 billion offer made by Dish, saying it is based on "imaginary" numbers and would create a company with "insane" amounts of debt.

Softbank chief Masayoshi Son said Tuesday he would not increase his own $20 billion bid for Sprint, made in October. The outspoken Son, who normally talks in Japanese, made a rare English presentation filled with financial minutiae aimed at convincing Sprint's shareholders, who are to vote on his proposal in June.

"Some people ask me, 'Won't Softbank be increasing its price for the offer?'" Son said. "Why should we? We are already providing a better deal than the Dish proposal."

Softbank said in October that it had a deal with Sprint to acquire a 70 percent stake in Sprint. Dish has said it would pay a $600 million cancellation fee if that deal doesn't go through.

Softbank and Dish are presenting two very different futures for Sprint, the third-largest carrier in the U.S., behind Verizon Wireless and AT&T by a large margin. Softbank is hoping to create one of the world's largest carriers with strong market presence in the U.S. and Japan, two of the world's largest mobile markets, as part of its aggressive international expansion. Dish has said it wants to combine its own mobile spectrum and satellite coverage with Sprint's offerings to create a U.S. powerhouse.

Son said combining Softbank and Sprint made sense because both are mobile operators, and the newly formed company would be one of the largest in the world. He noted that both companies are aggressively rolling out high-speed LTE networks for smartphones, while Dish is in a different business as a satellite provider.

"Softbank plus Sprint, together we would become the biggest customer for procuring from Ericsson. We would be the biggest customer from Alcatel-Lucent. We would be the biggest customer from Samsung. We would be almost the biggest for (the) iPhone as well," he said.

Son said the $5.5 billion gap between Softbank's offer and the one made by Dish was deceiving for a number of reasons. He noted that the Dish proposal includes a large payment in stock, and some of the payment would be delayed for a year, while Softbank's payment would be made immediately in cash.

He repeatedly tore into the Dish offer, calling the debt it would require "crazy" and "insane." He said Dish's calculations for synergy with Sprint were an "imaginary number."

Also Tuesday, Softbank announced it had set a record for revenue and operating profit last fiscal year. The company said it made ¥289 billion in net profit, as its Japanese mobile business continues to grow. Softbank also operates a host of Internet companies, including Yahoo Japan, and has significant investments in Chinese online firms such as Alibaba and renren.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags Mergers and acquisitionsbusiness issuestelecommunicationfinancial resultssprint nextelSoftbankDISH NetworkMasayoshi Son

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jay Alabaster

IDG News Service
Show Comments

Cool Tech

Toys for Boys

Family Friendly

Stocking Stuffer

SmartLens - Clip on Phone Camera Lens Set of 3

Learn more >

Christmas Gift Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Aysha Strobbe

Microsoft Office 365/HP Spectre x360

Microsoft Office continues to make a student’s life that little bit easier by offering reliable, easy to use, time-saving functionality, while continuing to develop new features that further enhance what is already a formidable collection of applications

Michael Hargreaves

Microsoft Office 365/Dell XPS 15 2-in-1

I’d recommend a Dell XPS 15 2-in-1 and the new Windows 10 to anyone who needs to get serious work done (before you kick back on your couch with your favourite Netflix show.)

Maryellen Rose George

Brother PT-P750W

It’s useful for office tasks as well as pragmatic labelling of equipment and storage – just don’t get too excited and label everything in sight!

Cathy Giles

Brother MFC-L8900CDW

The Brother MFC-L8900CDW is an absolute stand out. I struggle to fault it.

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Featured Content

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?