US companies propose broadband merger

Sprint and Dish Network will integrate all digital services US satellite television provider Dish Network said Monday it had made an offer to buy wireless provider Sprint Nextel, putting its value at $25.5 billion. The satellite company plans to finance the purchase with $17.3 billion in cash and $8.2 billion in stock, according to a statement.
The merger would "create the only company that can offer customers a convenient, fully-integrated, nationwide bundle of in- and out-of-home video, broadband and voice services," Dish chairman Charlie Ergen said in a statement.
"Additionally, the combined national footprints and scale will allow Dish-Sprint to bring improved broadband services to millions of homes with inferior or no access."
Dish said the proposed merger would result in "synergies and growth opportunities" estimated at $37 billion as well as $11 billion in cost savings.
The proposal represents a challenge to an offer made last October by Japan's Softbank to purchase 70 percent of Sprint for $20bn and recapitalise it.
US regulators, who want to insure the Softbank merger does not pose problems for national security, have yet to give a green light to the proposal.