The $21.6 billion deal was made complicated by a bidding war for the wireless carrier with Dish Network. July 10, 2013 4:27 PM PDT Softbank has officially completed its $21.6 billion acquisition of Sprint Nextel, Sprint announced Wednesday, finally closing a merger prolonged by a bidding war for the wireless carrier with Dish Network. Japan's Softbank is paying $7.65 per share in cash (about $16.6 billion) for a 78 percent ownership stake in the new company. The deal, which Sprint shareholders overwhelmingly approved late last month, won the unanimous approval of the Federal Communications Commission last week. Dan Hesse will continue to serve as Sprint's CEO, while Softbank's Masayoshi Son will become the new company's chairman of the board of directors. Sprint had been in talks with Softbank since last October regarding a $20.1 billion offer. After Dish came in with a surprise counteroffer of $25.5 billion, Softbank countered with a $21.6 billion offer it claims gives shareholders greater cash consideration. Dish complicated the process again with an unsolicited bid to acquire Clearwire, which is majority-owned by Sprint. Sprint had announced in December that it planned to buy the remaining shares of Clearwire and combine its network and spectrum assets with its own. During another bidding war, Sprint sued both Dish and Clearwire to prevent the satellite TV provider's takeover of the wireless broadband provider, alleging that Dish's tender offer violates the rights of Sprint and Clearwire's shareholders and the laws of the state of Delaware. Eventually realizing that the price was getting too high, Dish removed its offer to acquire Sprint to focus on its acquisition of Clearwire. But late last month, Dish gave up on its $6.3 billion offer to buy Clearwire as well. And on June 26 it said it was withdrawing its offer for Clearwire. This paved the way for Clearwire to finally be bought by Sprint, a proposal Clearwire shareholders approved earlier this week.
The $21.6 billion deal was made complicated by a bidding war for the wireless carrier with Dish Network.
Softbank has officially completed its $21.6 billion acquisition of Sprint Nextel, Sprint announced Wednesday, finally closing a merger prolonged by a bidding war for the wireless carrier with Dish Network.
Japan's Softbank is paying $7.65 per share in cash (about $16.6 billion) for a 78 percent ownership stake in the new company. The deal, which Sprint shareholders overwhelmingly approved late last month, won the unanimous approval of the Federal Communications Commission last week.
Dan Hesse will continue to serve as Sprint's CEO, while Softbank's Masayoshi Son will become the new company's chairman of the board of directors.
Sprint had been in talks with Softbank since last October regarding a $20.1 billion offer. After Dish came in with a surprise counteroffer of $25.5 billion, Softbank countered with a $21.6 billion offer it claims gives shareholders greater cash consideration.
Dish complicated the process again with an unsolicited bid to acquire Clearwire, which is majority-owned by Sprint. Sprint had announced in December that it planned to buy the remaining shares of Clearwire and combine its network and spectrum assets with its own. During another bidding war, Sprint sued both Dish and Clearwire to prevent the satellite TV provider's takeover of the wireless broadband provider, alleging that Dish's tender offer violates the rights of Sprint and Clearwire's shareholders and the laws of the state of Delaware.
Eventually realizing that the price was getting too high, Dish removed its offer to acquire Sprint to focus on its acquisition of Clearwire. But late last month, Dish gave up on its $6.3 billion offer to buy Clearwire as well. And on June 26 it said it was withdrawing its offer for Clearwire. This paved the way for Clearwire to finally be bought by Sprint, a proposal Clearwire shareholders approved earlier this week.
