Following recent rumors that suggested that Dish Network may have been trying to negotiate better terms for itself in its purchase of Boost Mobile from T-Mobile, it’s been revealed that the deal will finally happen in two weeks.
Dish Network and T-Mobile have confirmed in filings with the SEC that Dish will close its purchase of Sprint’s prepaid businesses, including Boost Mobile and Virgin Mobile, on July 1. Neither company gave any details on the deal, but previously Dish agreed to spend $1.4 billion on Sprint’s prepaid businesses.
Interestingly, T-Mobile’s filing suggests that the Department of Justice intervened to help get this deal across the finish line:
“On June 17, 2020, the Department of Justice (the “DOJ”) determined that T-Mobile has complied with the requirement in the final judgment entered by a federal district court in Washington, D.C. on April 1, 2020 (the “Final Judgment”) to provide DISH the ability to cross-provision any new or existing customer of the prepaid business with a compatible handset onto the T-Mobile network.”
Fox Business‘s Charles Gasparino appears to back that up, claiming that the DOJ mediated the deal between Dish and T-Mobile and forced Dish to complete it “after Charlie Ergen was looking for last minute concessions.” Rumors recently said that Ergen was looking for better terms on its deal with T-Mobile, like letting Boost customers trade in their current phones for new devices that would use T-Mobile’s network.
Way back in July 2019, Dish Network agreed to buy Sprint’s prepaid businesses and 9.3 million customers for $1.4 billion as well as Sprint’s 800MHz spectrum for $3.6 billion. It’s also slated get “robust access” to T-Mobile’s network for 7 years while it builds out its own network.
DOJ antitrust chief Makan Delrahim helped put this deal involving T-Mobile, Sprint, and Dish together, which could explain why we’re hearing now that the DOJ stepped in to get Dish’s purchase of Boost done by July 1.
Now it looks like Dish Network will indeed be buying Boost Mobile as planned, and T-Mobile is likely pleased that its merger deal is nearing completion. While we wait for July 1 to roll around, you can check out T-Mo and Dish’s filings for yourself at the SEC links below.
Sources: T-Mobile (SEC), Dish Network (SEC), Charles Gasparino (Twitter)