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]