Japanese Carrier Softbank Buys Controlling Interest in Sprint
As was rumored last week, Japanese carrier Softbank is purchasing 70% of Sprint for $20 billion. The deal is expected to be announced tomorrow morning, but the boards of both companies have agreed to the transaction. Softbank will buy $8 billion in shares directly from Sprint, and another $12 billion from existing stockholders at $7.30 per share, a 27% premium from Friday's close.
The purchase is a huge one for Softbank, which is essentially making a $20 billion gamble that it success in developing LTE wireless services in its home market of Japan can be translated to the U.S. Sprint, while the third largest wireless provider in the U.S., significantly trails the two market leaders, Verizon and AT&T.
Softbank's hope, say people familiar with its strategy, is to build on Sprint's spectrum position, while hoping the company can further consolidate the wireless industry through acquisitions of more spectrum and other operators. The deal is expected to close in roughly six months.
This puts another major carrier in the United States in foreign hands. Verizon is 45% owned by UK carrier Vodafone, T-Mobile is owned by German-firm Deutsche Telekom, and Sprint will now be majority owned by Softbank. There are no details regarding Sprint's branding in the US, or if Softbank will begin promoting itself within the country.
Sprint became the third of the four major U.S. carriers to offer the iPhone upon the release of the iPhone 4S in October 2011, with company executives moving to "bet the company" on the iPhone in committing to purchase more than 30 million iPhones worth $20 billion over the first four years of the partnership. The move has impacted Sprint's financials over the short-term, but the carrier believes that the long-term effects of having the iPhone will be positive.
Popular Stories
Following nearly two years of rumors about a fourth-generation iPhone SE, The Information today reported that Apple suppliers are finally planning to begin ramping up mass production of the device in October of this year. If accurate, that timeframe would mean that the next iPhone SE would not be announced alongside the iPhone 16 series in September, as expected. Instead, the report...
Key details about the overall specifications of the iPhone 17 lineup have been shared by the leaker known as "Ice Universe," clarifying several important aspects of next year's devices. Reports in recent months have converged in agreement that Apple will discontinue the "Plus" iPhone model in 2025 while introducing an all-new iPhone 17 "Slim" model as an even more high-end option sitting...
Apple supply chain analyst Ming-Chi Kuo today shared alleged specifications for a new ultra-thin iPhone 17 model rumored to launch next year. Kuo expects the device to be equipped with a 6.6-inch display with a current-size Dynamic Island, a standard A19 chip rather than an A19 Pro chip, a single rear camera, and an Apple-designed 5G chip. He also expects the device to have a...
Apple typically releases its new iPhone series around mid-September, which means we are about two months out from the launch of the iPhone 16. Like the iPhone 15 series, this year's lineup is expected to stick with four models – iPhone 16, iPhone 16 Plus, iPhone 16 Pro, and iPhone 16 Pro Max – although there are plenty of design differences and new features to take into account. To bring ...
Apple’s iCloud Private Relay service is down for some users, according to Apple’s System Status page. Apple says that the iCloud Private Relay service may be slow or unavailable. The outage started at 2:34 p.m. Eastern Time, but it does not appear to be affecting all iCloud users. Some impacted users are unable to browse the web without turning iCloud Private Relay off, while others are...
