Official: SoftBank to acquire 70% of Sprint for $20.1 billion
Once the acquisition is complete, SoftBank will become one of the largest providers of mobile Internet access worldwide thanks to the huge combined subscriber base of the two companies. The combined mobile telecom service revenue will rank third amongst global operations. The aforementioned $8 billion will be used towards establishing a more solid mobile network in the U.S. and other strategic investments that will hopefully make Sprint more competitive on the market.
If SoftBank fails to obtain sufficient financing and the deal does not close as a result, it must pay Sprint a termination fee of $600 million. The same amount will be owed to SoftBank by Sprint if the latter accepts a superior offer by a third party. In case Sprint's shareholders do not approve the transaction at their shareholder meeting, Sprint will have to pay up to $75 million of SoftBank's expenses.
1. rocko0011 (Posts: 33; Member since: 08 Jul 2011)
I wanna know more about this company. Is it promised that they can fix Sprint? because I've had about enough of Sprint's Data speeds. Premium service should feel better that this
2. e.wvu (unregistered)
I agree with you on the last part. I have Sprint as well, but canceled my contract and service ends this month. Could no longer handle getting slow data speeds.
4. Contreramanjaro (Posts: 153; Member since: 04 Dec 2011)
Sprint was fixing itself slowly, SoftBank will be able to help it speed that up. That $8b should help with that.
Also, this stuff isn't going through right away so you will not wake up tomorrow and suddenly have the worlds fastest EVDO A connection the world has ever seen.
If you are unsatisfied with Sprint, switch. That's how competition works.
3. ajac09 (Posts: 1212; Member since: 30 Sep 2009)
First things first. No one better expect an instant change for sprint. They have ALONG way to go. Thousands of towers in need of repair,the horrid customer service and the crappy coverage all need to be fixed before they can compete with the big boys
8. scorpio85 (Posts: 160; Member since: 16 Jan 2010)
Being the third largest cell phone company in the US makes them small...
10. TMobileRep_52_SwaaaG (Posts: 40; Member since: 03 Oct 2011)
They actually got second in the J.D. Power Top Customer Service of 2012... maybe check your facts?
11. RyanM4g63 (Posts: 15; Member since: 20 Aug 2012)
I think he ment size not rank judging by the use of the word largest
5. snowgator (Posts: 3159; Member since: 19 Jan 2011)
An interesting deal, that will mean very little until the end of next year. But, be truly amazing to see how the carriers shake themselves out. Does this go smooth, or does Metro/T-Mo merger go quicker and beat out Sprint? Do either of these mergers threaten the big two? How does US Cellular respond and survive?
6. jayfienix (Posts: 1; Member since: 15 Oct 2012)
This merger could help them in the long run but honestly in down for any company to take down the big two. Verizon is stupid high and Att call clarity sucks balls i switched for the unlimited data but i was smart and got a epic 4g not a itoy 5
7. moofoodooloo (Posts: 137; Member since: 04 Jan 2011)
Softbank isn't doing this for the sake of spending money. They are in the business of making money. To do that, they have to improve the Sprint we know now, meaning better coverage, faster data speeds, and accelerated LTE rollout. It's going to be 12 months before we begin seeing the affects of this deal, but as long as Sprint doesn't have a crew of incompetents at the helm, this could be very good for Sprint and the wireless marketplace as a whole, in terms of competition.
9. InspectorGadget80 (Posts: 5639; Member since: 26 Mar 2011)
I still don't see why would a Japanese Bank would try to buy Sprint when they don't even have ENOUGH MONEY to FULLY BUY THEM out plus their a JAPANESE CO.