Softbank to buy Sprint Nextel for $20 billion
The companies expect the closing of the transaction to occur in mid-2013. As a result of the transaction Softbank will own approximately 70% of the fully-diluted shares of New Sprint, which will own 100% of the shares of Sprint. Of course, the transaction, approved by the Boards of Directors of both companies, is subject to approval at a meeting of the Sprint shareholders, customary antitrust, and Federal Communications Commission.
With this deal Softbank will became one of the largest mobile internet companies in the world: the combined mobile telecom service revenue will rank third in the world. In the other hand, Sprint will get $8.0 billion of new capital for its mobile network, strategic investments, and balance sheet.
Softbank Chairman and 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. As we have proven in Japan, we have achieved a V-shaped earnings recovery in the acquired mobile business and grown dramatically by introducing differentiated products and innovative services to an incumbent-led market."
"This is a transformative transaction for Sprint that creates immediate value for our stockholders, while providing an opportunity to participate in the future growth of a stronger, better capitalized Sprint going forward. Our management team is excited to work with Softbank to learn from their successful deployment of LTE in Japan as we build out our advanced LTE network and improve the customer experience," said Sprint CEO, Dan Hesse. ■