Good and EVO

Softbank calls the Dish merger with Sprint “unrealistic”

softbank - for some reason we don't have an alt tag here

Ever since we learned that Dish Network is just as interested in acquiring Sprint as Japanese carrier Softbank is, the latter has been pretty quiet – until now. As we have come to just find out, the Japanese company has funded an industry study that says any proposed benefits of a Dish/Sprint merger are “unsubstantiated and unrealistic.”

According to this study, “Dish’s $37 billion estimate of the NPV (net present value) of total synergies created in the proposed Dish/Sprint merger is unusually high and there are multiple reasons to believe that Dish’s projections are neither achievable nor credible.” It goes on to explain that Dish never considered the actual integration costs for a combined company, which could be as high as $3.5 billion, and because the two companies operate in entirely different sectors (television and telecommunications), any claimed synergies would be difficult if not impossible to achieve.

Softbank claims that its experience in building out LTE in Japan would help Sprint’s current LTE buildout.

Dish’s official response is that, as an American company, it would be better for the US economy and for US job creation to maintain ownership of Sprint domestically. Additionally, Dish is offering Sprint more money ($25.5 billion instead of Softbank’s $20.1 billion offer), which is better for shareholders, along with more spectrum for Sprint. Dish also reminds us that this study was funded by Softbank, which is therefore not as objective as an independent third-party study.

Personally, I’m starting to find Dish’s arguments a little more convincing than Softbank’s, and I’m interested to see what the two companies might be able to accomplish together.

Whom would you rather see purchase Sprint?

[Softbank via CNET]
Pocketables does not accept targeted advertising, phony guest posts, paid reviews, etc. Help us keep this way with support on Patreon!
Become a patron at Patreon!

John F

John was the editor-in-chief at Pocketables. His articles generally focus on all things Google, including Chrome and Android, although his love of new gadgets and technology doesn't stop there. His current arsenal includes the Nexus 6 by Motorola, the 2013 Nexus 7 by ASUS, the Nexus 9 by HTC, the LG G Watch, and the Chromebook Pixel, among others.

Avatar of John F