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.”
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.”
“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!”