Sprint Nextel Corporation (S), DISH Network Corp. (DISH): Is This Market Moving Bid a Serious Acquisition Offer?

Page 2 of 2

Dish wants to do something considered impossible: Provide a nationwide triple play where video, voice services, and high-speed internet are all offered by one company wirelessly. This would set Dish head-and-shoulders above all competition, producing a massive company. By blocking the Softbank/Sprint Nextel Corporation (NYSE:S)/Clearwire Corporation (NASDAQ:CLWR) deal, the company could easily achieve these goals with a partnership of some sorts. Unfortunately, if this doesn’t work, then Dish most likely will not have the opportunity to build this network.

Conclusion

You might say, “your belief is speculative’, however, at this point, everything is speculative regarding the actions of Dish Network. The company has a clear goal, and it seems as though an acquisition offer to Sprint was its last ditch effort to try and stop a Softbank merger that it has tried tirelessly to disrupt. In the end, I think Dish will be unsuccessful, and that Sprint Nextel Corporation (NYSE:S) will remain a part of Softbank. Obviously, with Sprint seeing a 13% pop, if my theory holds true, then investors will be the ones to get hurt, meaning I’d sit this one out.

Brian Nichols has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

Page 2 of 2