You read it here first people…
On Monday I told you why SoftBank‘s deal was a better fit for Sprint than DISH’s proposal. Then yesterday the man himself, SoftBank’s Masayoshi Son came out swinging at DISH chairman Charlie Ergen and taking the same position I had the day before.
I said all DISH brought to the table was more leveraged debt.
Son said, “Charlie’s proposal does not provide any new cash into the company, and it provides heavy burden of debt.”
I told you Ergen didn’t have the experience in wireless, coming from the satellite world and Son said: “He himself admits he’s an amateur to our mobile industry. He does not have any history in our industry. So he’s a newcomer — totally, totally a newcomer.”
Then Son added that Ergen didn’t have the expertise to RUN Sprint!
Son seems to think Ergen is a lot of fluff and drew a comparison between the two of them that I found pretty funny: “I just deliver the results, instead of big-mouthing about the future,” Son said.
“Do you want to attach a satellite dish to your smart phone? It’s going to become much heavier. I don’t see any real meaningful value that he can offer to the smart phone customers.”
Didn’t I tell you Son has world class poker skills when it comes to negotiation. When asked if he was going to up his bid for Sprint, he replied: “People ask me, will SoftBank be increasing the price for the offer? Why should we? We are already providing a better deal than the Dish proposal”
He went on to say there’s just no way to do an apples to apples comparison.
“I believe our deal will go through,” Son said.
Why does Son think his bid is superior? If you follow his math, he states that he’s delivering a value of $7.65 a share while the DISH offer comes closer to $6.31.
Son knows he’s got opposition among some shareholders who aren’t on his side. When questioned about dealing with them, he simply replied, “They can stay as shareholders for however long they want. We are happy with just 65 percent.”
How soon does this maverick say it will be before shareholders will see the benefit of his plan?
“Starting in the second half of this year when our deal is closed, it will start showing early symptoms” of a turn toward profit, Son said. “And by next year it will start having a real benefit of turning around. Net income will probably start being positive very soon.”
To paraphrase the group known as The 5th Dimension, “Let the Son shine in!”
Didn’t Pebbles and Bamm Bamm sing that one too?
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Good stuff, Paul. This shorter follow-up was both timely and easily consumed. Thanks for the insights.
Stones. I love the Stones; Fred and Barney…… Thanks Dreamwriter326
Congrats on pegging this one, Wilson! You’re one happy ray of sunshine on this site. 😉
For those of you who dont know, Veronica is the sister of Bruce Hornsby, an old friend. In fact, I was over at his place one night and he played a song for me he’d been working on and couldn’t come up with a title he was happy with. I commented; the way you burn up that keyboard, your fingers look like spiders! He said, Oh MAN, thats it…. SPIDER FINGERS…. So if you go to his 1995 album Hot House, there it is, “Spider Fingers”. Check the album credit liner notes some time, see if you notice anything there.
I may not be Craig, but by God I KNOW people!
Veronica, we are past due for a drink. Call me.
Paul,
I am so glad Son read your previous columns before making his statement yesterday. LOL!
Tiad, actually he called me about midnight Monday night and asked, “Paul-son, what should I say?”. Why? Because that’s how he rolls!
You heard it here first; always right, always, 100% of the time!
Our genuinely coiffed scribe hits another homerun on kc business coverage….
I promised Hearne a lifestyle column, but Ive been slow as Billy Butler legging out a double with that one.
DO IT! It would be great fun. Take it from the “genuinely coiffed scribe”; I would never lie to you about writing OR food. Both are sacred.
Ergen just needs to call Son out. Meet at the Sprint HQ on Friday at 5:00 and settle this Glazer style.
Then when Ergen is standing in front of the HQ getting photographed, with a copy of the WSJ in his hand documenting his appearance Son can have a kamikaze drone dive bomb him.
Haw haw….fuuh you Chawee-san. Who da beeg man now? Haw, haw, haw.
Oh, Smarty, I HATE YOU!! I wish that had been MY idea! Ergen challenges Son to a fist fight, has a picture taken of himself in front of the building to prove he was there, holding the WJS! Craig comments on the post; NO SELF RESPECTING EXECUTIVE would do that!! You one-upped me here, Smarty, I respect that in any man. Kudos. (Thats the secret to a good joke, bringing the line around later and using it in another setting….)
Compliment accepted. But, as you know, a good joke needs the proper set up. Give yourself an assist!