Sprint Nextel Corp. has cut off merger talks with Dish Network Corp., Sprint CEO Dan Hesse told employees Tuesday.
But a June 18 deadline for Dish to present its “best and final offer” still stands, according to a letter filed late Tuesday afternoon with the Securities and Exchange Commission.
Sprint sale rumors again
- KCMax
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Re: Sprint sale rumors again
Sprint walks away from Dish merger discussions
- Zorobabel
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Re: Sprint sale rumors again
http://www.businessweek.com/news/2013-0 ... ng-new-bid
Dish to Let Sprint’s Deadline Expire Without Making New Offer
Dish to Let Sprint’s Deadline Expire Without Making New Offer
Dish Network Corp. (DISH) won’t make a new offer for Sprint Nextel Corp. (S) by the mobile-phone carrier’s deadline, leaving SoftBank Corp. (9984) as the main contender to acquire the wireless company.
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Re: Sprint sale rumors again
In the end all Dish did was make it more expensive for the Softbank merger. More money goes to shareholders, less for Sprint to use for improvements. But likely good news for KC telcom/tech industry that Dish didn't get Sprint.
The next test will be a potential Tmobile merger maybe in a few years. KC would have to compete with Seattle not just for HQ and backend operations but for network/telcom operations as well. If one gets too weak, the Feds will probably allow (or even want) the two to merge.
The next test will be a potential Tmobile merger maybe in a few years. KC would have to compete with Seattle not just for HQ and backend operations but for network/telcom operations as well. If one gets too weak, the Feds will probably allow (or even want) the two to merge.
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Re: Sprint sale rumors again
http://www.usatoday.com/story/money/201 ... l/2456501/Sprint shareholders OK SoftBank acquisition
With about 98% of the votes cast at Tuesday's special shareholders meeting voting in favor of the merger agreement - representing about 80% of Sprint's outstanding common stock as of April 18 - the deal proceeds without another competitive bid.
In addressing concern that a foreign company is acquiring U.S. airwaves, or spectrum, federal regulators have looked into the national implications of the deal and issued their approval in May.
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Re: Sprint sale rumors again
Dish has been pwned, Softbank won the war but many shareholders won the $.
Some industry talking heads now think that Tmobile parent in Germany (DT) will want to dump Tmob USA as it will be harder for them to compete with SoftSprint. They wanted to get out of US market when trying to sell to AT&T. The analysts think DT will soon or eventually try to create a bidding war between SoftSprint and DISH. If the case, Tmob US will probably want to merge with Sprint, not Dish for same reasons Sprint didn't want Dish. The Feds may prefer anyone but Sprint/ATT/VZW (desiring big 4 players) to acquire Tmob unless Tmob is doing very poorly and proves the market can only support a Big 3. So KC could end up having to compete with Seattle for the whole shabang in the near future if it comes to this. But at least Dish is now out of the way, that merger could have been disastrous for KC long term.
Some industry talking heads now think that Tmobile parent in Germany (DT) will want to dump Tmob USA as it will be harder for them to compete with SoftSprint. They wanted to get out of US market when trying to sell to AT&T. The analysts think DT will soon or eventually try to create a bidding war between SoftSprint and DISH. If the case, Tmob US will probably want to merge with Sprint, not Dish for same reasons Sprint didn't want Dish. The Feds may prefer anyone but Sprint/ATT/VZW (desiring big 4 players) to acquire Tmob unless Tmob is doing very poorly and proves the market can only support a Big 3. So KC could end up having to compete with Seattle for the whole shabang in the near future if it comes to this. But at least Dish is now out of the way, that merger could have been disastrous for KC long term.
Last edited by earthling on Tue Jun 25, 2013 3:31 pm, edited 1 time in total.
- Zorobabel
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Re: Sprint sale rumors again
Masayoshi Son seems to be an incredibly intelligent man, and he knows the US well having lived and studied here for 8 years. I am interested to see how this acquisition -- the largest foreign acquisition ever for a Japanese company -- will play out. It could be a very interesting deal.
- Eon Blue
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Re: Sprint sale rumors again
Sprint real estate roller coaster makes a SoftBank landing
Let's just take some time to appreciate how insane the Sprint Compound is. Space $10 per square foot thanks to subsidies and incentives, while comparable office space in southern Johnson County goes for $22 per square foot. No wonder the commercial real estate market is sluggish! Hopefully Softbank stuffs the Compound to the gills and the market can operate in the rest of the metro without that anchor.A 2011 analysis by Phil Kirk, former chairman of DST Realty Inc., found that the subsidized campus, coupled with relocation incentives offered to companies moving there, dropped the effective rent rate to near $10 per square foot or less.
- FangKC
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Re: Sprint sale rumors again
It's probably the best outcome for Sprint as mergers go. Softbank will probably buy other related companies to grow Sprint. Softbank has done 118 mergers and acquisitions in their history.
Since this is their largest acquisition in the US, any companies they buy in the future might actually get moved to the Sprint campus from other cities, since there is so much space there, and the cost of operating there is so low.
Softbank has a history of adding employees to companies they buy, so this might be good for the Metro.
Dish buying Sprint would not have helped the Metro. It's likely they would have moved management and jobs out of the City.
Since this is their largest acquisition in the US, any companies they buy in the future might actually get moved to the Sprint campus from other cities, since there is so much space there, and the cost of operating there is so low.
Softbank has a history of adding employees to companies they buy, so this might be good for the Metro.
Dish buying Sprint would not have helped the Metro. It's likely they would have moved management and jobs out of the City.
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Re: Sprint sale rumors again
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Last edited by pash on Wed Feb 08, 2017 10:54 pm, edited 1 time in total.
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Re: Sprint sale rumors again
Five years after this thread started it happened. Softbank now officially owns Sprint under probably the best terms that could benefit KC (compared to say Dish or someone else acquiring them). Hopefully the massive $16B planned investment will translate into more KC jobs.
http://www.bizjournals.com/kansascity/n ... diary.html
http://www.kansascity.com/2013/07/10/43 ... -deal.html
The merger mania probably isn't over. SoftSprint could get caught up in a Tmobile merger sooner or later and if that happens then KC would have to compete with Seattle for HQ and jobs. Would be surprising if Feds allow that in the short term. Maybe another 5 years?
http://www.bizjournals.com/kansascity/n ... diary.html
http://www.kansascity.com/2013/07/10/43 ... -deal.html
The merger mania probably isn't over. SoftSprint could get caught up in a Tmobile merger sooner or later and if that happens then KC would have to compete with Seattle for HQ and jobs. Would be surprising if Feds allow that in the short term. Maybe another 5 years?
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Re: Sprint sale rumors again
Sprint HQ is rumored to move again, to CA, though they officially responded saying no plans to move HQ. If even unofficial move, might just be the board and some HQ functions like when it was in DC area after Nextel merge. No surprise as is single/quicker hop to parent in Japan. Will be more concerning for KC jobs if Sprint eventually merges with Tmobile, which Sprint and Tmobile apparently support to eventually happen.
http://www.lightreading.com/mobile/4g-l ... -id/706807?
http://www.lightreading.com/mobile/4g-l ... -id/706807?
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Re: Sprint sale rumors again
New Sprint rumors they will go after a deal to acquire Tmobile early next year. Tmobile already showed interest early this year to merge with Sprint as Deutsche Telcom, who owns most of Tmob, has been wanting to get out of US market.
http://www.thestreet.com/story/12155040 ... _ven=YAHOO
Hard to say if this ends up good for KC as it's possible Softbank could eventually want to base out of Seattle since closer to Japan and obviously a major tech market. It's pretty clear Sprint/Tmob and Wallstreet want the merger to happen, is all about if the Feds will allow it. Seems Feds would allow within a few years only if one or other severely hurting.
http://www.thestreet.com/story/12155040 ... _ven=YAHOO
Hard to say if this ends up good for KC as it's possible Softbank could eventually want to base out of Seattle since closer to Japan and obviously a major tech market. It's pretty clear Sprint/Tmob and Wallstreet want the merger to happen, is all about if the Feds will allow it. Seems Feds would allow within a few years only if one or other severely hurting.
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Re: Sprint sale rumors again
Article on NBCNews about a new 2 million sq ft development in Silicon Valley for a "mystery company". Will accommodate more than 8000 employees. Fortune 500 company with recognizable name. Article says the company is currently a Silicon Valley resident (Sprint, of course has an office there) but in the accompanying video interview mayor talks like it will mean thousands of new jobs for San Jose.
http://tinyurl.com/ooxm6e2
http://tinyurl.com/ooxm6e2
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Re: Sprint sale rumors again
The SJ mayor described the project as as a company that will 'stay there and grow there'. If it were a new HQ coming from outside the area, he maybe would've mentioned it as an HQ move to the area.
But it wouldn't surprise me if KC loses Sprint corporate HQ in near future. Hopefully KC can keep Operational HQ like when Sprint HQ was based in DC area for a while. And then if they merge with Tmobile down the road, KC would have to compete with Seattle if not already losing operations by then.
Edit: I just checked and the Sprint Innovation Center in Bay Area is in Burlingame closer to SF, not San Jose.
But it wouldn't surprise me if KC loses Sprint corporate HQ in near future. Hopefully KC can keep Operational HQ like when Sprint HQ was based in DC area for a while. And then if they merge with Tmobile down the road, KC would have to compete with Seattle if not already losing operations by then.
Edit: I just checked and the Sprint Innovation Center in Bay Area is in Burlingame closer to SF, not San Jose.
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Re: Sprint sale rumors again
Hope you're right.
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Re: Sprint sale rumors again
There are reports that Softbank (Sprint's parent) is close to a deal with Deutsche Telekom (Tmobile's parent). I'd be surprised if the Feds allowed this to go through - maybe in 3+ years but not today.
http://www.reuters.com/article/2014/05/ ... 7A20140529
edit: This could be bad news for KC if this plays out...
http://www.reuters.com/article/2014/05/ ... 7A20140529
edit: This could be bad news for KC if this plays out...
Deutsche Telekom may also be more accommodating with Softbank regarding a break-up fee than it was with AT&T, the sources said. That is because T-Mobile is likely to be the surviving brand and its CEO, John Legere, is likely to lead the new combined company, thus avoiding a loss of subscribers and momentum it had to contend with during the drawn out regulatory process with AT&T, two of the sources said.
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Re: Sprint sale rumors again
Now reports that terms have been finalized for Sprint/Tmobile, pending approval by Feds. Sounds like Tmobile parent (DT) would still hold about 15-20% and possibly merged companies would keep the Tmobile name. Sprint's name is damaged so a name change doesn't surprise me but am surprised DT would allow Softbank to control the Tmobile brand in US when DT also uses Tmobile brand name in Europe. DT wants to keep a few top mgmt in new company. My guess is that HQ moves to Seattle or W Coast if this goes through but KC may have a chance to keep operations.
http://www.bizjournals.com/kansascity/n ... obile.html
http://www.bizjournals.com/kansascity/n ... obile.html
- Zorobabel
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Re: Sprint sale rumors again
Interesting strategy there. I knew Son would try to replicate his extremely aggressive growth and acquisition model from Japan, so we'll see if it gets through regulators.
If it does go through, I agree -- I think the HQ will move to the West Coast (Cali or Seattle).
If it does go through, I agree -- I think the HQ will move to the West Coast (Cali or Seattle).
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Re: Sprint sale rumors again
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Last edited by pash on Fri Feb 10, 2017 12:08 am, edited 1 time in total.
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Re: Sprint sale rumors again
^Good point. I would still think HQ goes to W Coast even if mgmt can take private jets to KC. It could just be a few hundred jobs in HQ if that and thousands of Operations jobs staying in KC since it is much cheaper to operate here and there are already many telcomm vendors with offices here. KC operations would have to deliver though or could eventually end up on W Coast. The Fed approval is next major step.
If the Feds allow the ATT/DirecTV deal to go through, they may allow Sprint/Tmobile. Even though completely different circumstances, if Feds allow Comcast/TimeWarner, chances even higher Sprint deal could go through - IMHO.
If the Feds allow the ATT/DirecTV deal to go through, they may allow Sprint/Tmobile. Even though completely different circumstances, if Feds allow Comcast/TimeWarner, chances even higher Sprint deal could go through - IMHO.