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 6:59:46 PM
That's because they're owned by Sprint. A few years ago I had a Helio phone(It was very cool back in the day). They were bought out by Virgin Mobile who then released the Helio 2(it was actually a worse phone), and they were then acquired by Sprint to serve as there pre-pay arm. Sprint,in order to keep me on there network let me break my contract with Helio/Virgin Mobile if I signed a two year with them. So I got me a Galaxy. Man I miss the keyboard. Sprint with there free roaming made it an easy decision since I could also use verizons network. Even better theres an awesome app for Android that allows you to force your phone into roaming if you're in an area with crappy sprint coverage.
RE: Will this do some good?
10/12/2012 10:15:18 AM
You weren't on Verizon's network. The two companies haven't co-roamed for a long time.
"I'd be pissed too, but you didn't have to go all Minority Report on his ass!" -- Jon Stewart on police raiding Gizmodo editor Jason Chen's home
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
Archos Offers $99 WinPhone, $150 x86 Win8.1 Tablet, Android Trio
August 27, 2014, 7:07 PM
HTC Desire 510 Officially Announced, May be First 64-Bit Android Smartphone
August 27, 2014, 3:50 PM
Report: Apple to Unveil "iWatch" at iPhone 6 Event on September 9
August 27, 2014, 2:00 PM
Reports: Snapchat is Now Worth $10B, Cofounders are Billionaires to Be
August 27, 2014, 9:30 AM
Tim Cook Says iPad Sales Have Merely Hit a Temporary “Speed Bump”
August 27, 2014, 9:16 AM
ZOTAC Announces Diminutive ZBOX PI320 pico
August 27, 2014, 9:00 AM
Most Popular Articles
Microsoft's Surface 2 Tablet Family Gets a $100 Price Cut
August 25, 2014, 1:16 AM
Report: Microsoft to Announce Windows 9 on September 30
August 21, 2014, 11:20 AM
From HULC to FORTIS: the Evolution of Lockheed Martin's Incredible Exosuit
August 22, 2014, 12:45 PM
SpaceX Falcon 9-R Rocket Suffers Malfunction, Self-Destructs During Test Flight
August 23, 2014, 9:36 AM
Owner of "Decepticon" Maserati Ordered to Appear in Court This Thursday
August 25, 2014, 7:55 AM
Latest Blog Posts
Space Terrorism is a Looming Threat For the United States
Apr 23, 2014, 7:47 PM
Facebook Aims to Provide Internet to "Every Person in the World" with Drones, Satellites
Apr 1, 2014, 10:20 AM
Retail Mobile Sites Experience Outages in Light of Simplexity's Bankruptcy
Mar 14, 2014, 8:48 AM
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information