AfterDawn: Tech news

Sprint and Softbank make a deal

Written by Andre Yoskowitz (Google+) @ 14 Oct 2012 21:29

Sprint and Softbank make a deal Major Japanese carrier Softbank has agreed to purchase a 70 percent stake in Sprint Nextel.
According to sources, the stake will cost them $20 billion. Softbank will buy $8 billion in direct shares and another $12 billion in shares on the market.

The news is especially notable since Sprint only has a market value of $17 billion.

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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