You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

Dish Network offering to buy Sprint in $25.5B deal


By Peter Svensson

AP Technology Writer

NEW YORK (AP) — Dish Network Corp. is trying to snag U.S. wireless carrier Sprint Nextel Corp. away from its Japanese suitor in recognition of the way satellite dishes are losing their relevance in the age of cellphones that play YouTube videos.

Dish offered $25.5 billion in cash and stock on Monday for Sprint, which Dish says beats the offer from Japan’s Softbank Corp. Softbank is offering $20 billion in cash, and shareholders get to keep 30 percent of Sprint. Dish is offering $17.3 billion in cash, and Sprint shareholders get 32 percent of the combined Dish-Sprint.

Sprint Nextel Corp.’s stock jumped on the news, as investors started looking forward to a bidding war between Dish and Softbank. Sprint had accepted the Softbank offer and was expecting to close on it this summer. Sprint, the country’s third-largest cellphone carrier, said it would evaluate Dish’s offer.

Charlie Ergen, Dish’s executive chairman, has been looking for a way into the wireless world for years. Dish has been buying space on the airwaves for cellphone service or wireless broadband. The Englewood, Colo., company has tried to partner with cellphone companies to put its spectrum rights to use, but has been repeatedly rebuffed.

The wireless world is in a ferment of deal-making. The largest two carriers, Verizon Wireless and AT&T Inc., are trying to bolster their spectrum holdings, while the next largest, Sprint and T-Mobile USA, are trying to make alliances to better compete after years of seeing their subscribers move to the bigger players. T-Mobile USA has struck a deal to merge with No. 5 MetroPCS Communications Inc., and Sprint’s deal with Softbank would give Sprint a much-needed cash infusion.

On a conference call Monday, Ergen said that Dish is a better fit for Sprint because it can combine its spectrum rights with Sprint’s. Dish can also use its army of satellite dish technicians to install antennas for wireless broadband on customer’s roofs, creating a competitor to cable and phone-line broadband.

Dish has 14.1 million TV subscribers, making it the No. 2 satellite-TV company after DirecTV. Comcast Corp. is larger than both and is the nation’s largest subscription-TV provider. Sprint, which is based in Overland Park, Kan., has 55.6 million wireless devices on its network.


Reader Comments ...


Next Up in Business

In close formation, reporter rides in squadron of vintage war planes
In close formation, reporter rides in squadron of vintage war planes

For the first time at the 2017 Vectren Dayton Air Show, the award-winning GEICO Skytypers flight squadron will fly through the Miami Valley in a tight formation. The squadron of six vintage World War II aircraft will perform on Saturday and Sunday — showing off daring, precision maneuvers in the high skies of Dayton. On Thursday, I climbed into...
Used car deals best in long time
Used car deals best in long time

This year is going to be the best year to buy a used car in a generation. There are a couple factors contributing to the perfect storm that’s benefiting used car buyers right now. First, automakers overextended themselves in 2014 with subsidized leases. All those cars are coming off-lease now and are back on the dealer lots. The supply is extreme...
Medical pot business applications flower across area
Medical pot business applications flower across area

Ohio is taking applications from would-be medical marijuana cultivators for state business licenses, and the application period for large-scale growers ends Friday, June 30. The Dayton area is attracting its share of them. The city of Dayton has six applicants who meet city and state zoning rules, said Keith Klein, senior development specialist for...
JC Penney to hire 600 people in Ohio
JC Penney to hire 600 people in Ohio

JC Penney is gearing up to hire 600 employees throughout Ohio. The retailer announced it needs associates for a variety of customer service and support positions, including: cashier, replenishment specialist, SEPHORA inside JCPenney beauty consultant and more. JCPenney salons in Ohio are also seeking experienced salon stylists to be part of the company&rsquo...
Urbana gourmet food business Rothschild Farm sold to Chicago firm
Urbana gourmet food business Rothschild Farm sold to Chicago firm

A Chicago-based capital management firm has purchased a nationally known Urbana gourmet food manufacturer with plans to combine it with a similar Cincinnati company. Glencoe Capital Management has acquired Robert Rothschild Farm, a local employer just outside Urbana known for its sauces, dips and other food products. Details of the agreement weren&rsquo...
More Stories