Sprint Shareholders Approve Softbank Deal

Posted by Sam Churchill on

Sprint’s shareholders overwhelmingly approved the proposed purchase by SoftBank on Tuesday, with approximately 98 percent of the votes cast at today’s special shareholders meeting voting in favor of the merger agreement, representing approximately 80 percent of Sprint’s outstanding common stock.

Earlier this month SoftBank revised its original proposal to counter Dish’s $25.5 billion counterbid. Dish subsequently abandoned its attempt to get Sprint.

Under the revised deal with SoftBank, Sprint shareholders will get more money and Sprint will get less cash than originally proposed. Softbank’s new $21.6 billion offer in cash and stock.

Sprint shareholders will now be paid $5.50 per share instead of $4.02 under the old agreement, with some $16.64 billion delivered to Sprint shareholders. SoftBank will get shares from existing Sprint investors for $7.65 per share, up from the previous offer of $7.30.

Sprint CEO Dan Hesse said “the transaction with SoftBank should enhance Sprint’s long-term value and competitive position by creating a company with greater financial flexibility,” in a prepared statement released after the vote.

The companies expect the merger to close early next month, after which it will be subject to standard regulatory scrutiny.

Central to CEO Masayoshi Son’s strategy is Sprint’s bid to acquire the rest of Clearwire, reports FierceWireless.

Dish has offered $4.40 per share for Clearwire, but Sprint recently increased its bid for Clearwire to $5 per share, and has since received support from Clearwire’s board and minority shareholders.

Clearwire commands around 160 MHz of spectrum in the top 100 markets which Sprint plans to use for TD-LTE offload in urban cores.

Dish’s options may be narrowing to T-Mobile or DirecTV, say some analysts.

But Dish may have an ace in the hole – 14 million rooftop terminals. How hard would it be to add 2.1 GHz small cells to those dishes? With a partner like Google, perhaps 600 MHz could supply backhaul and roaming. Dish could provide nationwide streaming video infrastructure, while Google could supply behavioral advertising.

Just saying. Charlie Ergen is still in the game.

Traffic from wireless and mobile devices will exceed traffic from wired devices by 2016, according to Cisco with Internet video increasing fivefold by 2017.

Related Dailywireless articles include; Sprint Bids $5 for Clear, Gets Support, Clearwire Board Backs Dish, SoftBank Upps the Bid for Sprint, Dish Makes $25.5 billion Bid for Sprint, Dish Demos Rooftop LTE, Un-Clearwire?, Clearwire Ownership Vote Delayed 2 Weeks, Battle for Clearwire, Clearwire Committee Likes Sprint Offer Best, Verizon to Buy Clear Spectrum for $1.5 Billion?, Sprint Buyout of Clearwire Fought by Crest Financial, Sprint to Buy Clearwire, DISH Proposes to Buy Clearwire, Sprint Buying Clearwire?

Posted by Sam Churchill on Tuesday, June 25th, 2013 at 8:31 am .

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