According to hedge fund giant John Paulson, the US$25.5 billion bid by Dish Network for Sprint Nextel is an offer worth reviewing. This is clearly a vote of confidence from an industry titan as to the ability of the US satellite television provider to beat out the bid by Softbank Corp of Japan.
In a statement to Reuters, Paulson said, "Dish is offering more value to Sprint shareholders and also is contributing valuable spectrum, fourteen million subscribers, cost synergies and revenue synergies." Paulson's fund is the fourth largest shareholder in Sprint-Nextel.
Dish is the second largest US satellite television company and its unsolicited offer was an attempt to up end SoftBank's bid for US$20.1 billion in cash for 70% shareholdings in Sprint-Nextel.
The major difference is that Softbank's offer is purely an investment move while Dish's offer not only cash but also expands the customer experience, allowing for video demand anytime anywhere through Dish's satellite service and Sprint's wireless network.
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