Sprint sold: What it means for NASCAR

Sprint CEO Dan Hesse speaks during the NASCAR Sprint Cup Series Champion's Week Awards Ceremony at Wynn Las Vegas on December 2, 2011 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images)
Sprint CEO Dan Hesse speaks during the NASCAR Sprint Cup Series Champion’s Week Awards Ceremony at Wynn Las Vegas on December 2, 2011 in Las Vegas, Nevada. (Photo by Ethan Miller/Getty Images)

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>>>

About Greg Engle 7420 Articles
Greg is a published award winning sportswriter who spent 23 years combined active and active reserve military service, much of that in and around the Special Operations community. Greg is the author of "The Nuts and Bolts of NASCAR: The Definitive Viewers' Guide to Big-Time Stock Car Auto Racing" and has been published in major publications across the country including the Los Angeles Times, the Cleveland Plain Dealer and the Atlanta Journal-Constitution. He was also a contributor to Chicken Soup for the NASCAR Soul, published in 2010, and the Christmas edition in 2016. He wrote as the NASCAR, Formula 1, Auto Reviews and National Veterans Affairs Examiner for Examiner.com and has appeared on Fox News. He holds a BS degree in communications, a Masters degree in psychology and is currently a PhD candidate majoring in psychology. He is currently the weekend Motorsports Editor for Autoweek.