Why not. Ergen can than the novice US investor for outbidding him for Clearwire and Sprint. Ergen can raven pick up the lunch tab.
Son has done much better elsewhere with his investments. He must be aware that the two of them were destined to work together.
Hard to say what Dish will do. Ergen in the past has invested in shaky companies such as TerreStar via bands to gain spectrum. Perhaps he's waiting to see if Sprint winds up in the bargain bn.
What this individual writes will not affect the stock price. What will is the competition. Verizon and ATT are huge and well financed. Sprint is much smaller with a huge debt. We are in a price war meaning Sprint could keep losing money. These facts could drag the stock price lower. The 2.5 -2.6 gh does have value especially in large cities. Also a Dish/Sprint arrangement would probably benefit both companies.
OK pops a few things to consider. Hesse was big on talk and Sprint was big on losses under his stewardship. Second of all, as I have learned as a former owner of Clearwire stock, the 2.5 gh spectrum is only worth what someone will pay for it. The market has become sceptical of Sprint again. Sprint will have to prove itself to even get to $10 let alone a higher price. The competition won't be asleep either thus it certainly appears that Sprint will continue to lose money all the while paying off hefty interest payments and still being saddled by high debt.
The longs here looked up to Son in awe of his powers. They hung in waiting for the rise in stock price they assumed would come. Now after Son has proven he's a mere mortal the longs find that hard to swallow. Two options forward. Son buys the rest of Sprint on the cheap. The other option is that Son gives up on Sprint and dumps it.
Given how corrupt Washington politicians are once the next presidential election is out of the way a really possibility as most of them simply don't represent most Americans. Expect higher wireless bills if this takeover does take place.
I would be a Sprint bull if it could show a profit in most reporting quarters. If it wasn't so saddled with debt. If Son did not control the company in the manner he does. A TMobile purchase is grat for TMUS shareholders at the price being discussed. For Sprint minority shareholders it's a crapshoot. Even more massive debt and a still unprofitable company. For the public less competition, less price wars and higher bills. Son will win no matter what. Tons of Alibaba cash. With or without TMobile he wins. Regardless at best Sprint is a long term hold. And only if Son does not take it private. The stock did well but has been going nowhere for over half a year. As a money losing acquirer and even that's a maybe the stock is dead money short term or even a losing proposition for the medium and long term.
This is a good deal for DIRECTV stockholders. Go back ten years and follow it's stock performance. For Ergen it clears up his options. I think this will bring him and Sprint closer together. Personalities aside it makes sense for both Dish and Sprint.
Sprint is in a race. Comcast wants to enter this race too. Google is experimenting with new technologies. Others are as well. The Artemis trial in SF is interesting. All are risk factors for Sprint. The competition from the other wireless carriers makes profitability more difficult for Sprint. Any viable technology even if it takes two years to implement into a significant competitive position is a risk factor which affects perception. Perception is what determines a stock's price.
This could be a Sprint killer. WiMAX looked so cutting edge that Clearwire and Sprint went deep in debt to aggressively build a WiMAX network. Sprint is now adding more debt with it's LTE buildout just to catch up to the major players. Money losing Sprint's stock could certainly nosedive if an Artemis/Dish arrangement works and can be spread to many markets.
We already have a pricing war and a market share war. Sprint is losing the market share war. May continue to lose money and is a doubtful contender to purchase TMobile. As I've stated previously four national carriers makes the market competitive. Three carriers does not. That's why Son will have to produce profits with what he has or the losses will go on for years to come.
Building up market share is a great strategy. More subs=more value. There's a story about Comcast getting into the biz. If they're serious it might be easier to do it via TMobile. Remember TMobile was up for sale. Still is at the right price. Remember DISH is not not obligated to partner up with Sprint only. Look at Netflix. They focused on market share. Hasn't hurt them has it.
SodaStream SODA is ready to break out. KitchenAid in partnership will be coming out with their retro SodaStream home soda system in May. Samsung already has a fridge with the SodaStream dispenser. Revenues keep going up year after year. The stock sold off this past 2013 and has now built a solid base. With almost 50% shares short I'll have to hang on to my soda for this ride.
Go back four weeks and look at the volume on up days and down days. Supply is dwindling. Shorts will get caught big time. Sodastream is a growth engine that has been validated by Samsung and now Kitchenaid.
There is no cartel. There is competition. If Son's big ego got in the way it has nothing to do with AT&T and Verizon. Gee does Son suddenly see a disadvantage in owning Sprint? He should have done more research before buying Sprint and Clearwire. Anyhow from $2 to $9 is pretty good profit. Over $11 briefly for those who aren't so greedy. Now four competitors in the USA while there are three major players in Canada which is even larger than the US with about 12% of the population. Two newer entrants are struggling. Chalk that up to a poor assessment of the market. That brings us back to Son who is having second thoughts. Too late as he's racked up a ton of debt. Sprint can succeed. That is quit having losses someday but as a big profit driver it's years away or never. The moral is don't let ego get in the way of sound investing.
Simply outlandish (SO). That's the snow job that Son appears to be presenting. SOn, SOFtbank and SnOw job. It's preposterous what Son is proposing when he says having only three nationwide carriers will result in better rates for users. Uh no. Competition is good. Case in point is the recent discounting by TMobile. The competition reacts with their own discounting deals. Eliminating TMobile via a Sprint takeover would ultimately give Son the option to set the rates of what today are two competing telcos. And how would he pay for the staggering debt of Clearwire, Sprint and TMobile combined?