Dish has amassed a significant cash reserve to the tune of $10 billion, which would be used to make about roughly 68% of its $7-per-share offer for Sprint. The other 32% would come in Dish stock, with the company also assuming some debt. The total represents a 13% premium on Softbank's bid. Ramifications: The Dish bid for Sprint is not conditional on the Clearwire acceptance of the Sprint offer, so there shouldn't be any hurdles to be faced on that particular aspect. That said Clearwire's 2.5 GHz spectrum holdings can play an instrumental role in the new Dish/Sprint company.
The key is how the Sprint board will react to this as the Dish offer, while better, comes with a heavy debt burden: the two combined companies would have more than $36 billion in debt, prior to tacking on more money that Dish would have to borrow to get the deal done, probably in the vicinity of $9 billion, making it a total of $45 bilion, which is a heavy toll. More than likely, Sprint will use this as leverage to get Softbank to increase its offer, which it can do, since it has a superior balance sheet compared to Dish. Now we will be able to see how intent Softbank is in its U.S. expansion plans and whether it will up the ante in the pursuit of Sprint. Follow @rgruia This article was written by an independent contributor, separate from TheStreet's regular news coverage.