I called this one a month ago…
Last weekend, while headed to the West Bottoms for First Friday, I was standing in line waiting for coffee behind a dude wearing one of those lame TAP-OUT t-shirts. It struck me funny as to why someone would actually wear one of those in public.
But when he turned to leave and noticed me gawking at him and made eye contact, I said something like, “Thank you so much for not kicking my ass for no apparent reason.”
He turned, shook his head and walked out.
Dish Network honcho Charlie Ergen wasn’t so lucky.
Not after Softbank billionaire Masayoshi Son put a MMA-style submission hold on him this past weekend by sweetening the bid for Sprint an extra $4.5 billion. Son probably just took an advance on next month’s trust fund payment, or reached into his right front coat pocket and whipped it out.
So was giving stock holders an additional $3 billion – effectively 5-6% additional value in the game – a smart move? Yeah, but it wasn’t the final submission hold move.
That came in the form of a line Son put in the best and final offer that reads. “Any counteroffer must be fully financed to be considered a superior offer.”
And with that, Dish is probably tapped OUT.
DISH is so far leveraged Ergen can’t possibly pull that off. SoftBank is now so far down the aisle headed for the altar with Sprint, that Son added a prenup that’s going to cost Sprint $800 million to dump him – up $200 million from the previous one night stand penalty.
This deal is done, people.
SoftBank will now own 78% of Sprint, instead of the 70% it would have gotten in the original deal.
Sprint shareholder’s rescheduled vote will take place June 25 and SoftBank will end up the victor when it’s all done and said.
Sprint said Dish had until June 18 to make a “best and final” offer but in the same breath said they have stopped talking to Dish.
Ergen says he’s still talking. I wonder who to?
One of my kickass KCC tipsters provided me an internal email Hesse to Sprint staffers on the topic that reads:
“The Special Committee of the Sprint Board and its advisers conducted a lengthy due diligence process with DISH Corporation over many weeks. After numerous in-person meetings and conference calls across a wide variety of subjects, the Special Committee decided DISH’s unsolicited proposal to acquire Sprint was not reasonably likely to lead to an offer superior to the SoftBank agreement. The Special Committee has now terminated discussions with DISH, but has given a June 18th, 2013 deadline to provide a “best and final” offer. Our shareholders need to vote on the amended SoftBank merger agreement. To allow ample time to evaluate the new agreement, we will move the special meeting of the shareholders from June 12th to June 25th. It is our expectation that the merger with SoftBank will be completed in July.”
This is the first sign of life that’s blown over Sprint’s campus since 2005.
That’s when the merger with Nextel put sufficient weight on the handle that it flushed the balance sheet down the Leawood sewer system and to this day the deal remains a Harvard Business School epic fail that allowed the rivals to gobble up market share.
Son is the 66th-richest person in the world, Ergen is 87th.
At this point, where you rank on the big list isn’t much of an an issue; it’s how you’ve played the game. From a cash on hand basis, Son wins the game because Ergen is buried in leveraged assets.
Damn Wilson, you pissed off the Jews, the Cajuns and now MMA TAPOUT fans.
At least Glazer took a more direct approach. He pissed off everyone at once.
Hmmmm, two more graduates of the Brandmeyer Business School.
Sprint is the Kanrocksas of the telco’s. No lemonade to be made from this lemon.
Hell, the feds didn’t even think enough of Sprint to include them in the NSA scandal.
Losing this deal may be the best thing that ever happened to DISH.
You’re right, Smarty; that was pretty short sighted of me, thanks for pointing that out.
I should have said he was wearing a Tony Stewart NASCAR shirt, smelled like gas and had chew dripping down his lip, as he screamed “Get me my damn coffee, I LOVE TONY STEWART and I dont care who knows it!”
(I said Tony Stewart NASCAR shirt since everyone knows that Jeff dude is gay and it was, afterall, in OLATHE.)
I just dont do well with changing the facts of the story so I left it as it really happened. It is what it is.
I hope that cleared things up some. There aren’t any NASCAR fans or Olatheans who read KCC, I should be in the clear now. As always, I appreciate your comments.
I was wearing a FLOUNDERS tshirt from Pensacola; any one in their right mind would understand that.
You are lucky that dude did not roundhouse kick you in teh face, mount you when you fell on the bald part of your head and then start wildly dry humping your face.
You are very, very lucky wilsun…
do not taunt the tacky tapout/ed hardy crowd, the harlinator would be pissed.
Dude, I take only calculated risks, and, not having a bald spot, that one was eliminated. There are two other things to always keep in mind; first, never get involved in a land war in Asia. Second, never misunderestimate Wilsun.
Oh no fans you think?
I wrote this just waiting for you to read it, SD.
I see this T Shirt on the Plaza a lot.
http://24.media.tumblr.com/tumblr_mb27xmTsuR1rgquhco1_400.png
Chuck, maybe I should go sit on the Plaza for an entire Friday night and see if I couldnt cough up a story other than rogue bikers parking too long in front of the coffee shop. I could likely offend 3 or more groups in one story that way.
Let it go buddy.
Everyone loves your stuff, you are always gonna piss someone off, or you are not interesting.
🙂
Thanks Chuck.
And do I really seem like someone who’s too terribly worried about upsetting someones apple cart? I’m pretty thick skinned, if youre going to be on here more than a little dust is going to get kicked in your face.
Im totally cool with that concept. As long as its not coming from the Catholics; I have to draw a line somewhere.
Then how do you explain Glazer?
Explain Glazer? In what way?
He can’t be explained
Maybe you could do a story about Jardines still not being open.
Mike, Jardines is still not open. I fail to find the connection, but Ill honor that request.
I just checked again; still not open yet.
It is about the only Plaza story that got more coverage than the rogue biker story.
Good point, Mike.
And if anyone should know about Jardine’s, it’s Paul. He came thisclose to buying it.
Seems like only yesterday…
But allow me to remind Mike that the Plaza kid problems remains in first place. Just as the Plaza over the hill biker lawbreakers continue to break the law with no recompense
Good point, Hearne.
NOTE; the WSJ is just now reporting this evening Sprint seems to have cut off talks with DISH. If you read KCC, you knew that hours ago, thanks to your “well coifed scribe”.
Mike; this just in, BREAKING NEWS: Jardines Remains Closed. In related news, General Franco – Still DEAD.
Interesting I just read this on BBG today. There may still be a fight for shareholders…
http://mobile.bloomberg.com/news/2013-06-11/softbank-criticized-for-bid-that-values-sprint-at-lower-amount.html
Then again, this analysis comes from Janco Partners in Denver Colorado… Dish Networks is in Denver Colorado… Paid whores?
Yeah, I don’t know Janco; I look into them.
Thank You for the update on Franco. I am glad he has not come back as a zombie. He was bad enough when he was alive!
1935 was a bad year, but he did keep them out of WWII.
Now, the bell tolls for the survival of Spanish culture in the face of unrestricted immigration.
Franco might be as popular as the Golden Dawn if he were alive today.
KCC calls it before the Star AND KC Business Journal. We told you talks were over while Ergen said he was still talking. Last night, WSJ, KCBJ and the Star chime in.
http://m.bizjournals.com/kansascity/news/2013/06/11/sprint-walks-away-from-dish-merger.html
You actually scooped all of them!
I did indeed and thanks for noticing! I had the same insight for Clearwire, that just went DISH’s direction instead of Sprint, but I’m not thinking that play is over yet. Good sources, man, its not me.
Despite all of the joking and sarcasm about UFC wannabes, scofflaw bikers, Jardine’s, and zombie dictators, you actually are providing interesting insight and timely information on this subject better than anybody. Don’t sell yourself short about it being the sources. Finding good sources, asking them the right questions, and reporting it is what makes good investigative journalism as far as I’m concerned.
Well thank you, Mike. The only thing I like better than sarcasm is satire and I’m happiest when people don’t know which I’m utilizing or if I’m being totally serious!
I appreciate your comments for or against, it comes with the territory. I’d even buy BalboniousMaximus a beer if he’d refrain from spitting in my face until were done drinking them!
Thanks again, much appreciated.