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Japanese Softbank Planning To Buy 70% Stake In Sprint

Sprint is one of the largest carriers in the U.S. and has a huge base of subscribers. Now, a Japanese mobile carrier, Softbank Corp., has plans of acquiring a 70% stake in Sprint. The deal, it is being said, is going to rake in a massive $12.8 billion or even more.


Sprint

Softbank has been trying to expand the scope of its operations well beyond Japan. The company has been involved in a number of recent acquisitions and in the past, has hinted at acquiring a stake in the Vodafone Group.

Now, it is trying to get a foothold in the U.S. market through the acquisition of Sprint. According to a person close to the negotiations happening between Sprint and Softbank, the deal will exceed a whopping sum of $12.8 billion.

By paying such a hefty sum, Softbank will be able to acquire a 70% stake in Sprint. The rest of the company’s stake will be traded in the market. However, this is not decided and the negotations between the two giants are still on their way.

Sprint happens to be the third largest U.S. carrier and registered an operating income of $214 million last year, with its total revenue clocking at $33.6 billion. The carrier intends to start the deployment of 4G LTE services this year and will effectively roll out the new connectivity option to millions of users.

Source: WSJ

Courtesy: All Things D

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