Dish Network is attempting to acquire Sprint Nextel, the country's third largest wireless provider, in a bid to combine the company's television services with Sprint's telecommunications abilities.
The offer is worth $25.5 billion, more than the deal in October by Softbank, a Japanese telecommunications company, to acquire a 70% stake in Sprint. Sprint shareholders could back out of the Softbank deal, worth around $20 billion, and receive more money through the Dish Network deal. In addition, if Dish Network would indeed acquire Sprint Nextel, then consumers would be able to receive special deals by signing up for television, Internet, and cellphone coverage from the combined companies, all on one bill, similar to other deals available from Verizon and Time Warner. Roni Singleton, a spokeswoman for Sprint, issued a statement from the company concerning the deal.
"Sprint Nextel today confirmed it has received an unsolicited proposal from Dish Network to acquire the company. The company said that its board of directors will evaluate this proposal carefully and consistent with its fiduciary and legal duties. The company does not plan to comment further until the appropriate time."
Sprint Nextel has 56 million subscribers, behind Verizon and AT&T, and would provide a represent a huge boost of customers looking to bundle together their phone, Internet, and television bills to save money. Dish Network chairman Charlie Ergen, in an interview with The New York Times, revealed he is confident the deal will be accepted by Sprint Nextel shareholders.
"It really means that we're going to give consumers what every consumer wants...They want broadband and video and voice in their home and want the exact same thing outside the home. And they want it to look and feel and priced outside the same as it is inside."
- Contribute to this Story:
- Send us a tip
- Send us a photo or video
- Suggest a correction
