We win either way, there is a bidding war coming. They will not start from scratch again, they will simply outbid Dish with the extra 5billion they just received. 2 months ago they also received 1.5 billion more then anticipated in debt offering so they are getting ready.
Well, I think we should analyze the situations more carefully. right now, TMobile enterprise value is 30 billions, 15 billions in market value plus 15 billions in debt. To buy out 75% stake, son will probably have to pay a 15 to 20% premium. that puts t mobile market value at 18 billions and 75% of that is about 14 billions or so. So the total enterprise value for t mobile take over is about 33 billions. Now on to the sprint's deal, with the original offer, son values sprint at market value of about 28 billions. Now add on the net debt of about 9 billions, we have enterprise value of 37 billions. Let's say he increases the offering price to 8 dollars that will cost him another 5.4 billions and enterprise value of 37 plus 5.4 or about 43 billions. so for 43 billions he has sprint 55 MHz of spectrum, 57 million customers and pretty much all of clearwire 130MHz of spectrum for a total average of 185 MHz of spectrum. But if he takes over tmobile, for 33 billions, he gets 75MHz of spectrum and 43 million customers. so ask yourself this question: are 110 MHz of spectrum and 14 million customers worth an extra 10 billions? you bet. Not only that dish will take over sprint and clearwire and the combined entity's 230 MHz of spectrum will be a fierce competitor and leave tmobile further behind. I don't care how good son is, if charlie has that much spectrum he can offer services that son can never dream of. Here are the maths which make it more obvious which is the better option for son: 33 billions / 43 millions customers = 767 dollars per customers; 43 billions / 57 millions = 754 dollars per customers. so if he buys t mobile, he will pay 767 dollars per customer, but for sprint he only pays 754 but on top of that he will get all the extra spectrum.