Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Sprint Nextel Corporation (S) Sprinting to a Soft Landing, Finally?

Sprint Nextel Corporation (NYSE:S)Sprint Nextel Corporation (NYSE:S) has been hanging in there as the No. 3 wireless service provider in the U.S. That might seem like a third-place horse in a two-horse race, behind the duopoly of Verizon Communications Inc (NYSE:VZ) and AT&T Inc. (NYSE:T), but the company has had some good momentum in recent months.

But it seemed at times that the momentum was actually complicating efforts in a takeover bidding war that lasted several months and featured Japanese telecom company SoftBank Inc. against DISH Network Corp (NASDAQ:DISH). After a couple of impressive offers and continued negotiations, the Sprint Nextel Corporation (NYSE:S) stockholders in a near-unanimous vote approved Softbank’s offer of $21.6 billion in cash and stock to assume about 70 percent ownership of the company. The last DISH offer was $25.5 billion in cash and stock in April, but stockholders went back to SoftBank and got it to better its deal by about $1 billion, which was enough to convince the shareholders.

SoftBank increased its initial cash consideration to stockholders from about $12 billion to nearly $16.5 billion, and that was enough to result in 98-percent approval among the stockholders. The next step is to have the deal approved by the Federal Communications Commission. Sprint Nextel Corporation (NYSE:S) CEO Dan Hesse said, “The transaction with SoftBank should enhance Sprint’s long-term value and competitive position by creating a company with greater financial flexibility.”

Sprint Nextel Corporation (NYSE:S) has been working to build out its network, and it has been looking to SoftBank has an option to provide some capital so the company can finish its infrastructure project while also providing some considerations for those stockholders.

What are your thoughts about this deal? Are you in any way invested in Sprint Nextel Corporation (NYSE:S) like fund manager John Paulson, who has 8 percent of his portfolio in the stock? (Check out his holdings here.) Do you agree with the sentiment that SoftBank will be better than DISH Network Corp (NYSE:DISH)? Let us know your feedback in the comments section below.