View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. Technology
October 15, 2012

Softbank to buy 70% stake in Sprint for $20.1bn

The transaction is expected to be completed by the middle of 2013

By CBR Staff Writer

Japanese telecommunications firm Softbank has agreed to acquire 70% stake in the US carrier Sprint Nextel for $20.1bn.

Of the total purchase price, about $12bn will go to Sprint shareholders and the remaining $8.1bn will be used to strengthen the company’s balance sheet.

The transaction, which is subject to regulatory approvals, is expected to be completed by the middle of 2013.

Upon completion of the transaction, SoftBank will form a new US subsidiary, known as New Sprint, which will invest $3.1bn in a newly issued Sprint convertible senior bond.

As per the terms of the deal, Dan Hesse will stay in his job as chief executive of Sprint and the company’s headquarters will continue to be in Overland Park, Kansas, US.

Sprint, which has $21bn in long-term debt, had struggled to compete with Verizon and AT&T and had recently launched a restructuring network.

Softbank CEO Masayoshi Son said: "This transaction provides an excellent opportunity for Softbank to leverage its expertise in smartphones and next-generation high-speed networks, including LTE, to drive the mobile Internet revolution in the world’s largest market."

Content from our partners
Scan and deliver
GenAI cybersecurity: "A super-human analyst, with a brain the size of a planet."
Cloud, AI, and cyber security – highlights from DTX Manchester

Earlier this month, Softbank had agreed to acquire telecom services company eAccess for $1.84bn to compete with its rival KDDI.

Softbank entered into mobile carrier business in 2006 by acquiring Vodafone’s Japan unit for $15.5bn.

Websites in our network
Select and enter your corporate email address Tech Monitor's research, insight and analysis examines the frontiers of digital transformation to help tech leaders navigate the future. Our Changelog newsletter delivers our best work to your inbox every week.
  • CIO
  • CTO
  • CISO
  • CSO
  • CFO
  • CDO
  • CEO
  • Architect Founder
  • MD
  • Director
  • Manager
  • Other
Visit our privacy policy for more information about our services, how Progressive Media Investments may use, process and share your personal data, including information on your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.