Japan’s SoftBank purchases 70 percent stake of Sprint

SoftBank has reached an agreement with Sprint that will give the Japanese telecom a 70 percent stake in the United States’ third largest mobile service provider. The deal is worth some $20.1 billion, with the majority of the cash going into the pockets of current Sprint stockholders. $8 billion will be invested directly in Sprint’s operations.

Even with the sale, which will provide Sprint with some much needed capital, not much is expected to change at Sprint. The company will remain headquartered in Overland Park, Kansas and Dan Hesse will retain his position as CEO. A separate entity, New Sprint, will be created, under which Sprint will operate as a wholly-owned subsidiary. All, of course, is pending the necessary regulatory approvals. For a deeper look at the details of the deal, check out Sprint’s official announcement at the source below.

[via Sprint]

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  • DavidVarghese

    Maybe they can get some much needed LTE radios across the US…

    • NYCHitman1

      They’ve already got plenty of towers up and running. It’s just a matter of getting backhaul established, then eventually expanding to the major markets.

    • Sean Kendrick

      PLEASE !!! I hope they gut sprint and Fire Dan

      • DavidVarghese

        Uh, a little extreme there buddy?

  • munee

    Have to change that sign to Sprint Softbank Nextel Corporation!

    • NYCHitman1

      From what I read in a Wall Street Journal article, they would be operating under “New Sprint”, which would be a subsidiary of SoftBank or something like that.

  • leocal79

    Sprintbank

    • NYCHitman1

      That’s Spank to you, sir!

      • thatcrazyone

        i dont wanna know what your putting in the spankbank! lol

      • munee

        The #1 reason your equipment doesn’t work on the spank network…. your holding it wrong….. sorry i had to!

      • Manbo

        At Softspank, we are all about customer service. We are working towards making all customers happy with our endings.

  • supremekizzle

    This will either be very good : ) or very bad : ( Either way I’m excited to see what these Japs can do to revitalize Sprint!

    • Albert Naranjo

      SMH

      • supremekizzle

        Why are you shaking your head?

        • PrincessPeanut

          “Japs” isn’t exactly considered PC

          • supremekizzle

            Just like “Jew” It can be derogatory or not. In this case, not.

  • C-Law

    I hope new sprint isn’t like new coke

    • bmg314

      xD

  • harold

    Give it five years and it’s headquarters will be in japan.

  • a) youth.in.asia

    Now when you say that someone’s area is going to get coverage, you have to back it up when you’re now holding onto a nice chunk of change.

  • Max

    Would be nice now but if the devices roll into sprint stores the same time as softbank stores.

  • http://twitter.com/inguatu ingua2

    First order of business, remove the “unlimited” data plan. Sprint… network for suckers… only better than Tmobile.

    • yankeesusa

      Unlimited is here to stay for at least 1 more or 2 more years. This is their bloodline. We may see it disappear with the lte network up and running but even then right now unlimited is what is helping sprint get new customers.

  • JaswinderSinghJammu

    Get the LTE going and maybe they will have chance to survive.

  • Fuzzypaw

    Leaving Dan Hesse in charge means the combined company will continue to fail.

    • Covert_Death

      Dan Hesse has been a pretty successful CEO so far, i wouldn’t be so quick to put the blame on him just because he is currently running the show

    • yankeesusa

      Dan hesse has actually kept this company afloat. Without him the company probably would have filed bankruptcy. He’s the one that decided a lot of thing over the shareholders decisions and it ended up working for the better. So far he has been the one that is keeping unlimited also.

  • CJ

    Would love to see an influx of other devices…….Sony would be nice…..

    • Guest

      Committing to buy $15 Billions worth of iphones without anything in return was not the smartest move he ever made for sure.

  • yankeesusa

    This is great! Now they will have the necessary funds to continue the lte rollout or get it out faster. Plus if they take over clearwire also they may even have lte advanced by next year. I know its an outside the us company but that’s the way it is. At least its not china.

  • Dkwx

    Everyone should visit http://s4gru.com to see the real story on changes at Spring and the LTE rollout before bashing the company.

    • rustygh

      Shameless plug. Sprint sucks. Hope this helps them though, competition is good
      So funny how many people back sprint 4G blows 3G super slow. Hey but we got unlimited. LOL

  • mikedo2007

    Hope it really help Sprint.