Mobile phone market in the US is being shaken. Dish Network declared to buy up Sprint Nextel, competing against SoftBank.
Sprint Nextel is the third largest company of mobile phone in the US, but was suffering from a shortage of capital. SoftBank presented the purchase plan to Sprint in Oct. 2012. Sprint side agreed to make a contract with SoftBank. It seems to be a friendly takeover.
Dish Network is a company dealing with satellite broadcasting. Entry to mobile telecommunication to offer movies to mobile phone users seems to be a good business model.
Sprint has to pay the penalty fee for SoftBank if the purchase is cancelled, as I mentioned before. Of course Dish is ready for compensating the loss for Sprint.
Dish continues sparring with SoftBank over competing Sprint bids
Mr. Masayoshi Son, the president of SoftBank, performed a presentation about the advantage of Softbank in the offering of buy up. He claimed about his opinion with his own voice.
(Presentation movie about the transaction with Sprint in the Web site of SoftBank)
In contrast, Dish rebutted SoftBank. After all, both SoftBank and Dish said that the opposite side did not make an apple to apple comparison.
Dish rebuts SoftBank’s claims over Sprint bid
At the moment, SoftBank seems to have no intention to raise up the amount of value for Sprint. For SoftBank it would be the worst scenario to be concerned with a battle of cat-and-mouse game with Dish. It is an option for SoftBank to retreat with fruits, up to $1 billion, including the penalty fee and convertible bonds.
I do not know which will be the winner. It is possible that the US government dislikes a foreign company controlling upon the mobile telecommunication. If so, SoftBank will face hard time.