Shares of Sprint (NYSE:S) surged more than 16% in Monday morning trading after Dish Network (NASDAQ:DISH) launched a surprise bid for the wireless carrier.
The satellite TV service said it would pay $25.5 billion for Sprint. In November, Japanese telecommunications giant Softbank (PINK:SFTBY) said it would acquire a 70% stake in the nation’s third largest wireless carrier for $20 billion. That merger proposal is still being scrutinized by U.S. regulators, USA TODAY noted.
Under the terms of its proposal, Dish would pay $7 a share for Sprint, a 13% premium over Softbank’s bid. The deal would include cash payments of $17.3 billion as well as $8.2 billion in Dish shares.
Dish Chairman Charlie Ergen said that the combination of Dish and Sprint would allow the satellite TV provider to offer enhanced telecommunications services, including voice, wireless, high-speed Internet and TV across both satellite and mobile wireless systems.
Two months after receiving a takeover bid from Softbank, Sprint agreed to acquire the outstanding minority stake in Clearwire (NASDAQ:CLWR) for $2.1 billion.
Shares of Dish fell almost 3% in Monday trading.