Softbank acquires 70% of Sprint for $20.1 billion: facts and repercussions

Softbank acquires 70% of Sprint for $20.1 billion: facts and repercussions
Sprint is saved. Japanese carrier Softbank is spending $20.1 billion and takes over 70% of the U.S. third-largest carrier with over 56 million subscribers. It is the world’s third-largest by post-paid subscriber count, after Verizon and AT&T, of course.

So what does it mean? First, analysts wondering whether Sprint will go bankrupt or not can finally calm down - it’s not. The carrier has been undergoing a tough transition under chief executive Dan Hesse, but a much needed one where Nextel customers are getting migrated and costs are being cut where they have to be.

This of course costs a lot of money. Sprint has made two large investments. One is the iPhone which it didn’t have until 2011, a $15 billion investment that will start paying off only in 2014. The second one is 4G LTE, after 4G WiMAX failed to become the 4G technology of the future.

source: Softbank

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33 Comments

1. rb68

Posts: 27; Member since: Apr 23, 2010

Do you mean third largest in the United States? Or is the US the only large, populous country left with post-pay subscribers?

2. MartyK

Posts: 1043; Member since: Apr 11, 2012

This is a great move; to keep Sprint a float; now the can focus on the business of getting advance LTE rolling out swiftly; (now to get Tmobile LTE) up and this should put pressure on ATT & Verizon to lower their prices

3. richardyarrell2011

Posts: 510; Member since: Mar 16, 2011

Tmobile pimp slaps Sprint and Verizon senseless...

4. androiddownsouth

Posts: 598; Member since: May 02, 2012

How do you figure that? There are many markets, including where I reside, that Tmobile's coverage is laughable compared to Verizon, even Sprint. If you can back that up with facts, then I will give you your props, but in my market, no way is what you just said true.

6. remixfa

Posts: 14605; Member since: Dec 19, 2008

your market is not the entire US. There are other markets where the reverse is true. Here in Jax, Fl is one of them. Tmobile and VZW have the best coverage here around the city. Sprint has glaring holes even within the city and ATT used to have to have repeaters in the stores so they could activate devices. Sprint has more coverage area over all than Tmobile, but that's only because Tmo does not cover huge swaths of rural area like VZW and Sprint. Since most people dont live in rural areas it makes very little difference in real life to most people.

10. androiddownsouth

Posts: 598; Member since: May 02, 2012

I realize that remix, and tend to agree with most of your posts. That said, no network pimp slaps Verizon's senseless in the US. I understand that different locations have different results for different providers, but overall, no network beats Verizon, and overall, as you said, Sprint does have more coverage than Tmobile. Just trying to get someone to back up their nonsensical comment, that's all remix. His comment is akin to one Taco would make about the iPhone lol.

17. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

EXACTLY. Overall it's clearly understood that Verizon has the best coverage hands down, sure some cities this might flip flop but Verizon in EVERY state has more coverage than anyone, so that means that NATIONALLY Verizon is king. For anyone to say what was posted is CLEARLY 100% disingenuous with themselves. +1

44. ErikSax

Posts: 21; Member since: May 20, 2009

Not true here. Where I am, T-Mobile P-slaps all of the other carriers. From what I hear, a static-filled, artifact ruined conversation spread equally across the entire US is a joke. Some of the everywhere networks should perfect their conversations where the signal is 100% at peak and available before spreading their messy, unintelligible voice communications to adjacent towers claiming, we cover the entire US. Please listen to a conversation on a T-Mobile phone where there IS a signal and compare it to your everywhere network in 2012, not from memory.

48. androiddownsouth

Posts: 598; Member since: May 02, 2012

I can do just that on my HTC Rezound, and NEVER have call quality problems in my market. The joke is thinking Tmobile has better coverage than ATT, especially Verizon. Besides, IF it is a static-filled conversation, I go many places Tmobile wouldn't have a prayer of picking up a data signal, and would be lucky to have a voice signal. Don't take my word for Verizon's network quality. Just ask JD Power & Associates. The facts are the facts bro. Verizon has best network. Period.

24. ngo2dd

Posts: 896; Member since: Jul 08, 2011

Northen Michigan T-Mobile does not have any service what so ever. Many million of people live in rural area and not in big city. Remixfa never have fact. Look at what he say about the A6 and how it is a re-brand samsung processor. And now we all know he is full of it.

7. HowMyDictate

Posts: 18; Member since: Jun 18, 2012

He never has facts. He just bashes other companies (especially Verizon) for really no apparent reason. Ignoring facts like best network and best customer service, he re-writes history in his own mind to pump t-mobile up. Besides a hot mascot T-mobile is pathetic in a lot of areas. But they are affordable...

15. Ruckus

Posts: 286; Member since: Oct 20, 2011

Im no fan of Verizon but they have the best network. Im personally a Sprint guy and a very satisfied one at that, but ill give credit where credit is due.

18. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

A VERY truthful & honest post. Just stating facts & nothing more. +1 to you. If I could give more I would.

42. glentomas123

Posts: 70; Member since: Jun 01, 2011

I live in a fairly large market here in the US (LOS ANGELES!!!). I am a Sprint customer because of there lower cost of service vs ATT and VZN. SPRINT sucks eggs!!! No LTE here and the charge you $10 extra dollars for owning an LTE phone with no LTE service!!!! WTH!! I don't know how heavy data users afford VZN or ATT. Thinking of leaving Sprint for cause and switching to TMO.

16. SuperAndroidEvo

Posts: 4888; Member since: Apr 15, 2011

T-Mobile's prices are nice but their coverage is just nowhere NEAR the level of Verizon. Verizon has the most coverage hands down with out equal. There is no one alive that can dispute that. That is fact just like the oceans of our planet are made of water. You usually have some good comments but this one is CLEARLY not one of your best.

21. lubba

Posts: 1313; Member since: Jan 17, 2011

The money tmo pay could well spent better phones more towers. You don't see sprint have a mascot chick in a red dress.

31. EclipseGSX

Posts: 1770; Member since: Oct 18, 2011

Right they just have their CEO in them, that's much cheaper... ps its magenta

35. lubba

Posts: 1313; Member since: Jan 17, 2011

I must be half asleep when I wrote this... Stupid!!!!

39. meowcenary

Posts: 187; Member since: Apr 13, 2012

I could never understand the way the need for a spokes model for t-mobile. Maybe it's eye candy for us guys? It's a waste of money right there. As for better phone, you can't get better than what is on their resume. What are you expecting? Their phone resume is as impressive as the other telecomm providers, short of lacking a iphone.

30. Berzerk000

Posts: 4275; Member since: Jun 26, 2011

Verizon does have more coverage than T-Mobile, but I stick with T-Mo because of unlimited data and the fact it's GSM. Plus, the closest LTE market is 60 miles away from me, while T-Mo has HSPA+ right in my town. I usually get about 7-10 down, and that is one impressive feat in my little country town where everyone else is on Verizon and is stuck on 3G.

5. ajac09

Posts: 1482; Member since: Sep 30, 2009

aka this does nothing for sprint today or tomrrow or even by christmas but it gives sprint cash to spend.

8. axllebeer

Posts: 271; Member since: Apr 05, 2011

True, but it's cash they very much need to continue to improve the network. I hope that's a priority for them when they get this cash. In a years time we should see Sprints network lightyears ahead if where it is now. Here's hoping.

9. moofoodooloo

Posts: 137; Member since: Jan 04, 2011

Don't expect to wake up tomorrow and have LTE. Expect business as usual for atleast another 12 months.

11. simplyj

Posts: 406; Member since: Dec 23, 2009

So this leaves AT&T as the only fully owned American cell phone carrier in the United States.

12. blazee

Posts: 414; Member since: Jan 02, 2012

Japs are taking over

13. 305Bucko

Posts: 506; Member since: Aug 07, 2011

Better Japs than Chinese

14. theBankRobber

Posts: 682; Member since: Sep 22, 2011

God I can't wait to leave Sprint and their s**tty slow speeds. Got full bars and still have 200kbs speeds. Im done with Sprint, now to decide ether Verizon or AT&T which will be my next carrier.

19. lubba

Posts: 1313; Member since: Jan 17, 2011

Actually they saved Dan Hesse from his iPhone deal.

20. Jeradiah3

Posts: 1149; Member since: Feb 11, 2010

This is a good move for Sprint and the best move theyve had in a while. I wonder what new owner will do with Sprint because this would only be a good deal if its in their favor. you dont want a "dictator" like owner of a company thats barely holding itself together

22. johnbftl

Posts: 283; Member since: Jun 09, 2012

This is going to be a financial disaster. Softbank is still trying to recoup from their iPhone blunder in Japan, and from overpaying for the Vodafone merger in 2008. They don't have the capital right now to invest in Sprint. Not to mention Sprint right now is financially in the toilet after their debacle buying Nextel, overpaying for the iPhone, losing subscribers for consecutive quarters on end before the release of the iPhone, and putting a complete idiot in charge as CEO in Dan Hesse who was run out of town at AT&T and forced AT&T to sell off their original wireless division to SBC because it was doing so poorly and he insisted that they stick with analog TDMA instead of upgrading their network. Softbank better oust this moron if they hope to have any chance of surviving.

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