Japan's Second Largest Carrier, Softbank, Nears $12B USD Deal to Acquire Sprint
October 11, 2012 1:50 PM
comment(s) - last by
1 trillion yen could earn Japan's fastest rising star ownership of a sinking U.S. firm
The shakeups in the U.S. mobile industry look to continue, with surprising news from Sprint Nextel Corp. (
). Sprint had been repeatedly mulling an acquisition of MetroPCS Communications Inc. (
) before Deutsche Telekom AG (
a deal to partially acquire MetroPCS
and merge it with its struggling subunit T-Mobile USA.
Following the collapse of its potential MetroPCS pickup, Sprint has announced that it itself is actually on the verge of being partially or fully acquired by a top Japanese carrier. Sprint writes, "Sprint today confirmed that it is currently engaged in discussions with Softbank regarding a potential substantial investment by Softbank in Sprint."
Softbank Corp. (
) has been on a steady rise in its home nation over the last half decade, starting with a leveraged buyout of Vodafone Group Plc.’s (
) Japanese arm (Vodafone co-owns Verizon Wireless in the U.S.). That moved propelled it into third place.
In some ways Softbank resembles a Japanese version of AT&T, Inc. (
) with its
aggressive acquisition strategy
. Like AT&T, it also was boosted in the years since 2007 by an exclusivity arrangement on Apple, Inc.'s (
) iPhone, with both companies
losing exclusivity in 2011
"Unlimited" service vendor Sprint could have a new owner. [Image Source: Sprint]
Just last week Softbank announced a major acquisition of rival eAccess, a move which would make it Japan's second largest carrier and boost its number of LTE base stations by 50 percent. The purchase -- which is paid for in stock -- is worth $1.84B USD,
, or $2.3B USD,
The New York Times
Reportedly its purchase of Sprint shares could run higher -- much higher.
The Wall Street Journal
report that Softbank is targeted a full acquisition priced at approximately 1T ¥ (~$12B USD). The Sprint release does not mention the extent of the acquisition or the in-progress price.
It's unclear what kind of real synergy could be realized by the tie-up with the Japanese carrier, but at the very least Softbank could bring a culture of success to Sprint.
This article is over a month old, voting and posting comments is disabled
RE: Will this do some good?
10/11/2012 5:16:55 PM
The big 3 is better than the big 2 I guess.
"Paying an extra $500 for a computer in this environment -- same piece of hardware -- paying $500 more to get a logo on it? I think that's a more challenging proposition for the average person than it used to be." -- Steve Ballmer
Deutsche Telecom to Partially Acquire, Merge MetroPCS w/ T-Mobile USA
October 3, 2012, 11:45 AM
AT&T Tucks Its Tail Between Its Legs, Abandons T-Mobile Acquisition
December 19, 2011, 4:50 PM
Apple's iPhone 4 Comes to Verizon Wireless With 5-device "Personal Hotspot"
January 11, 2011, 11:14 AM
New Reversible "Type-C" USB Plug Coming in Mid-2014
December 4, 2013, 10:38 AM
IDC Reports PC Shipments Will Decline by Double Digits in 2013
December 4, 2013, 10:18 AM
Canon EOS M2 Digital Camera Unveiled In Japan
December 3, 2013, 11:10 AM
Applebee's to Place Tablets at Each Table for Paying the Check, Ordering Food
December 3, 2013, 10:01 AM
Quick Note: Sony PS4 Sells 2.1 Million Units
December 3, 2013, 8:16 AM
UK iPhone Sales Show 5S Preference by Three-to-One Over 5C
December 2, 2013, 10:55 AM
Most Popular Articles
NSA Snares Americans' Porn Viewing Histories in Effort to Target Muslims
December 1, 2013, 9:00 PM
Coalition of 20+ Tech Firms Backs MRAM as Potential DRAM, NAND Replacement
November 29, 2013, 11:59 PM
Fed Up With Cheating OEMs, Microsoft Trolls Chromebooks in New Ad
November 27, 2013, 4:09 PM
Xbox? PCs? Mobile? Microsoft Wants One Windows to Rule Them All
November 25, 2013, 8:21 PM
Seattle Restaurant Bans Google Glass, Tells Wearers to "Just shut up and get out"
November 27, 2013, 10:27 AM
Latest Blog Posts
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
AT&T Explores $100B+ USD Deal to Acquire Vodafone's European Operations
Nov 4, 2013, 7:34 AM
U.S. Army Developing Cyber, Electronic War Arsenal
Oct 31, 2013, 4:49 PM
More Blog Posts
Copyright 2013 DailyTech LLC. -
Terms, Conditions & Privacy Information