Softbank to Acquire 70% Stake in Sprint for $20.1 Billion
Updated: re-wrote to reflect official announcement.
Softbank and Sprint today officially announced that Softbank will acquire 70% of Sprint for a total of $20.1 billion. Softbank will pay Sprint $8 billion directly for an unspecified number of shares and then an additional $12 billion in additional shares from the market. In order to complete the transaction, Softbank will first set up a shell company called New Sprint in the U.S. New Sprint will be the legal vehicle through which Softbank takes control of its interest in Sprint, which will become a subsidiary of New Sprint. New Sprint will have its own board of directors, but soem of Sprint's existing board will serve on New Sprint's board, as well. Current Sprint CEO Dan Hesse will remain at the helm of the nation's third-largest network operator after the transaction takes place. The partial acquisition by Softbank will give Sprint immediate access to a large amount of cash to fund operations, further build out and improve its CDMA and LTE networks, and potentially purchase smaller network operators. The companies expect the transaction to close by the middle of 2013, pending board and regulatory approval.
Sprint Needs This
AT&T and Verizon are absolutely killing them right now- as nice as Sprint's "unlimited" is, it's like dial-up by comparison on their clogged 3G network and their WiMax network doesn't even seem capable of pulling above 100kbps anymore.
Will Sprint Unlimited Data be Ephemeral?
I am a true fan of Dan Hesse and Bob Johnson but the unlimited data business model is not sustainable while maintaining an acceptable operating margin and while contributing and maintaining the EBITDA and OBITDA.
Sprint is rich asset and spectrum but they are seriously lacking operational funds. and truly unlimited handset data is quite taxing on the resources of a network that is crippled by a botched network vision upgrade that is way over budget and behind schedule and that has negativity impacted and ALIENATED thousands of otherwise loyal base customers , almost ...
Sprint rebranding? Not neccesary!
"New Sprint" is just "Cellco Partnership" for the organization formerly known as Sprint/Ne...
Sprint's makin' a big come back
I hope they now slam billions into the network, and go to town on the greed that is known as AT&T and Verizon.
Will Sprint change their name again?
This Could Be What Sprint Needs
He stopped the bleeding and got the company stabilized.
He was finally able to offload the dead weight known as iDen with an acceptable exit strategy.... (only if he could wash his hands of Clear)
It is my hope that Softbank is in it for the long haul and this will still take some time....