Sprint Nextel Corporation announced early Monday that they have ‘entered into a series of definitive agreements’ with Softbank Corp. effectively giving up 70% of the company to the Japanese owned firm. After the deal is approved, SoftBank will own approximately 70% and Sprint equity holders will own approximately 30% of the shares of company named New Sprint.
“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 one of the world’s largest markets,” said SoftBank Chairman and CEO, Masayoshi Son. “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 to an incumbent-led market. Our track record of innovation, combined with Sprint’s strong brand and local leadership, provides a constructive beginning toward creating a more competitive American wireless market.”
SoftBank will form a new U.S. subsidiary, New Sprint, and invest $3.1 billion. After the deal closes SoftBank will add an additional $17 billion into New Sprint. New Sprint will become a publicly-traded company and Sprint will become its wholly-owned subsidiary. MORE>>>