AfterDawn: Tech news

Softbank in active talks to buy majority stake in Sprint

Written by Andre Yoskowitz (Google+) @ 11 Oct 2012 11:33

Softbank in active talks to buy majority stake in Sprint Large Japanese carrier Softbank is in active talks to buy a major stake in Sprint Nextel, confirms the American carrier.
The majority stake would cost Softbank 1 trillion yen, or about $12.75 billion USD.

Sprint's stock has jumped 20 percent today following the news. The news is especially notable since Sprint only has a market value of $17 billion, meaning the Softbank stake will likely be very substantial.

The company is the third largest carrier in the U.S. behind Verizon and AT&T but ahead of T-Mobile, who is also looking to boost subscribers and spectrum by merging with pre-paid king MetroPCS.

Softbank is worth about $40 billion and is led by Japan's second-richest man, Masayoshi Son. The company recently purchased eAccess in Japan for $1.84 billion, giving it 39 million subscribers. Sprint has 56 million in the U.S.

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