SoftBank said to downsize office in Silicon Valley following earlier decision not to buy T-Mobile

SoftBank said to downsize office in Silicon Valley following earlier decision not to buy T-Mobile
Sprint's corporate parent SoftBank had maintained a large office in Silicon Valley, assuming that Sprint was going to merge with T-Mobile. Even after SoftBank decided that it wouldn't be able to sneak the deal past U.S. regulators, there was hope that some sort of combination could be made. SoftBank had purchased Sprint last year in a $22 billion acquisition, and had hoped that a purchase of T-Mobile would allow it to take on Verizon and AT&T.

But now, the Japanese company is calling it quits. It has started to downsize the Silicon Valley office and is sending development engineers to Sprint HQ in Kansas. Other employees are returning to SoftBank's HQ in Tokyo.

SoftBank had leased two buildings in Silicon Valley at a cost of $3 million a year. This is where the telecom company was planning to house a combined Sprint-T-Mobile. One of the two buildings has stood practically empty since the lease started, and SoftBank is considering renting out the space.

The move to downsize the Silicon Valley location is being considered the final nail in the coffin for any sort of combination between Sprint and T-Mobile.

source: Reuters

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3 Comments

1. DnB925Art

Posts: 1165; Member since: May 23, 2013

Yeah that Softbank building is right on US101 (where the old Circle Star Theater once stood a long time ago) in San Carlos, CA. I drive by it everyday.

2. joe1blue

Posts: 169; Member since: Jul 25, 2013

it really is for the better no matter what people say,but people will always say what if they would have merged.

3. Joshua9007

Posts: 94; Member since: Jun 08, 2012

The combined company would have still been a primarily urban service company. So things wouldn't change much for their customers, though with their giant combined spectrum, they could've seriously took on weird home broadband... But there are a few areas where sprint had better coverage and some for T-mobile, but not much rural unless you count edge coverage... so this wouldn't have helped their one major weakness with their lack of rural coverage! Yes they would have had similar subscriber numbers, saved on redundant costs, and been able to build out their coverage, but it would be a while until it happened (if it did, Softbank would want to make some money back eventually). I think US Cellular will be bought next add it is the last major provider outside the big 4. Their rural coverage would help either company compete &their would still be some cost savings from operations.

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