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.
SoftBank Sinks More Money Into Sprint
SoftBank has been snapping up shares of Sprint, increasing its stake recently by as much as $87 million. Despite SoftBank CEO Masayoshi Son's misgivings about the overall acquisition of Sprint, SoftBank said it "is enthusiastic about Sprint's prospects.
SoftBank Invests Another $73 Million in Sprint
SoftBank has purchased yet more shares of Sprint stock, boosting its stake in the company to just over 80%. SoftBank shelled out $73 million for about 16.8 million shares.
SoftBank, Sprint Majority Owner, to Split In Two
SoftBank today revealed a plan to separate itself into two separate companies, one for its Japan-based carrier business and another for its international operations, including Sprint. SoftBank's domestic business unit, which includes investments in Yahoo Japan, will be run by Ken Miyauchi.
Japan's SoftBank to Buy UK's ARM for $32 Billion
SoftBank today announced plans to buy ARM Holdings for $32 billion. SoftBank runs one of Japan's largest wireless networks and is the parent company of Sprint in the U.S., while ARM designs and licenses the Cortex-branded mobile processors often found in today's smartphones and tablets.
SoftBank to Trim Thousands of Jobs at Sprint
Masayoshi Son, CEO of SoftBank, said the company plans to eliminate thousands of jobs at Sprint in order to reduce costs and aid in the company's turn-around plans. Son made the comments while discussing SoftBank's financial performance, which was impacted negatively by Sprint.
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....