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
10/12/2012 10:20:12 AM
The SIM-only plan is a good option, as it essentially mimics European wireless economics. However, it does keep the best phones away from most people. $600-700 is a lot to pay for a device up-front. Paying for it over a two year period (revenue guaranteed by contract) makes the actual high cost of first tier smartphones more manageable. If you are happy with non-current equipment it can be a huge moneysaver though.
10/12/2012 2:18:11 PM
You pay for it one way or the other. In fact, the contract-subsidized phone will cost you more in the long run.
"Young lady, in this house we obey the laws of thermodynamics!" -- Homer Simpson
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
Apple Rakes in $10.2B Profit for Fiscal Q2; Announces 7-for-1 Stock Split
April 23, 2014, 4:39 PM
The Price is Right: OnePlus One Packs Hot Spec for Only $299
April 23, 2014, 3:37 PM
Google Unveils Solar Panel Lease Plan for Homeowners
April 23, 2014, 9:56 AM
Quick Note: Apple Invites Companies to “Copy” Its Environmental Record
April 22, 2014, 7:58 AM
OnePlus One Images Leak Ahead of April 23 Launch
April 21, 2014, 5:19 PM
Nike Axes FuelBand Team, Exits Wearable Device Market
April 21, 2014, 4:58 PM
Most Popular Articles
A Bug's Life: Female Cave Bugs Have Penises, Penetrate Males for Three Days
April 17, 2014, 7:20 PM
HTC Hires Former Samsung Marketing Chief Who Developed "Galaxy" Brand
April 18, 2014, 6:00 PM
NASA Finds "Habitable Zone" Planet Sized Similar to Earth
April 18, 2014, 3:13 PM
Mounties Arrest 19-Year-Old Who Delayed Canada's Tax Filing w/ Heartbleed
April 17, 2014, 3:24 PM
Thanks to Government Crackdown, Chinese "Porn Cop" Has Watched 600K Adult Videos
April 21, 2014, 12:00 PM
Latest Blog Posts
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
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information