Softbank buys 70% stake in Sprint
The Japanese company Softbank has just announced via press conference that it is buying a majority stake in US mobile carrier Sprint.
Japanese Softbank has just announced via joint press conference that it will be buying a 70% stake in the US mobile carrier Sprint. The purchase will cost USD 20.1 billion. This price includes a $12.1 billion purchase of existing shares, as well as the purchase of $8 billion worth of new shares which Sprint is releasing.
The press conference at which the deal was announced
This purchase gives Sprint much needed funds, netting an approximate $3 billion, which the company will use to regain control of wireless internet provider Clearwire and aid in it's release of new LTE services. In addition to these investments, Sprint has been spending a lot of money on Network Vision (an upgrade in Sprint's infrastructure), as well as a billion dollar investment in iPhone (which has so far garnered a loss of over $600 million). All of these lead Dan Hesse, CEO of Sprint Nextel, to state that the company would see a resulting marginal expansion in 2014.