SoftBank Officially Acquires Sprint
Japanese Carrier Gets Majority Share for 70% of Sprint for $20.1 billion
by Karl Bode 12:24PM Monday Oct 15 2012 Tipped by drew
Last week's rumored acquisition of Sprint by Japanese wireless carrier SoftBank has been officially confirmed by Sprint. According to a company press release
, SoftBank will acquire 70% of Sprint for $20.1 billion. The deal will involve SoftBank paying $8 billion to buy new Sprint stock at roughly $5.25 a share, then paying another $12.1 billion to buy existing stock from other investors at $7.30 a share. The deal will still need approval from regulators (which shouldn't be an issue, given the deal would bring a stronger third competitor to bear against AT&T and Verizon), and is expected to close sometime in the middle of 2013. The deal gives Sprint a much-needed lease on life with SoftBank helping to fund the company's ongoing deployment of LTE services. Sprint's stock has soared on the news but so has Clearwire's -- speculation being that SoftBank will also attempt to acquire Clearwire as the consolidation train rolls down the tracks.