SoftBank, a Tokyo-based mobile phone carrier, has put forth a favorable bid. While already having offered Sprint a pricey proposal, the company raised its offer to a whopping $21.6 billion. With this buyout, $16.6 billion would go to shareholders, while the other 5 billion would be injected into capital. In return, SoftBank would receive a 78% slice of the US telecom provider, according to a Bloomberg article.
SoftBank's inflated bid was a stern response to the $25.5 billion offer put forth by Dish Network. However, this proposal is somewhat unrealistic. Wells Fargo analyst Jennifer Fritzsche argues, "We believe the deal as proposed by DISH would be a difficult one to accomplish (especially on the corporate governance side)."
By the end of the current fiscal year, earnings-per-share are supposed to hit as low as 88 cents, according to a Wells Fargo report.On June 25, shareholders will cast a vote on the billion-dollar SoftBank buyout. However, if this pricey tug-of-war game continues, the buyout price may still have fuel to grow.
GameStop (GME) shot up 8.83% after the unveiling of the next generation Sony (SNE) console, PlayStation 4. Sony's new console -- priced 100$ under the Xbox One -- will feature a somewhat liberal used game policy. Purchasers will have the right to trade and sell games, and, unlike the Xbox One, will not require an Internet connection to play. This will provide a needed tailwind for GameStop, as a continual shift toward mobile gaming has been a hit to the company. By the end of April, pre-owned video game products accounted for 31% of total sales, according to a PiperJaffray report. For the 2013 fiscal year, Wedbush analysts expects the gaming outlet to post $3.13 in share earnings on over 8.7 billion in revenue. This would be a slight downgrade from the 8.87 billion the company posted in 2012. --Written by David Webster in New York >Contact by Email. Follow @thedavidwebster
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV