Dish Bids for Sprint: Shotgun wedding made in heaven?
Dish shook up the wireless market today with an offer to buy Sprint, arguing that the deal it has put on the table is worth 13% more than the current Softbank offer. But beyond the size of the deal, Dish has a compelling argument in terms of the synergies of both companies. Dish has spectrum waiting to be used – something that Sprint could clearly benefit from – as well as a large customer base in the U.S. market. By contrast, as we noted when Softbank made its initial bid for Sprint, there are fewer obvious benefits of a Sprint/Softbank deal. But more importantly, this is the first case of a Pay TV operator buying into mobile telecom, rather than a telecom company moving into Pay TV, a case of “man bites dog” compared to the more usual outcome.