October 15, 2012

Japan's Softbank will buy 70% of Sprint

(Reuters) Japanese mobile operator Softbank Corp said it will buy about 70 percent of Sprint Nextel Corp, the third-largest U.S. carrier, for $20.1 billion - the most a Japanese firm has spent on an overseas acquisition.

The deal, announced by Softbank's billionaire founder and chief Masayoshi Son and Sprint Chief Executive Dan Hesse at a packed news conference in Tokyo on Monday, gives Softbank entry into a U.S. market that is still growing, while Japan's market is stagnating.

It also gives Sprint the firepower to buy peers and build out its 4G network to compete in a market dominated by AT&T Inc and Verizon Wireless.

Sprint owns 48 percent of Clearwire. While Softbank said no action was required, most analysts and investors see a Sprint-Clearwire tie-up as an inevitable consequence of the Softbank deal.

One way or another, analysts have long said the U.S. telecommunications industry needs to consolidate, but few looked to Japan as a catalyst.







If you liked this article, please give it a quick review on ycombinator or StumbleUpon. Thanks

Congratulations! Now you can use SolidOpinion commenting system in all its magnificence! Click the link to get your password.

Форма для связи

Name

Email *

Message *