Softbank to purchase 70% stake in Sprint for $20 billion
It looks like our second report on rumors of Softbank of Japan picking up a stake in Sprint for $19 billion is far closer than our first attempt that touched on a $12.8 billion purchase, considering how it is now official – Softbank of Japan will fork out a cool $20 billion to purchase up to a 70% stake in Sprint, according to Business Insider. The deal will be officially announced on Monday as well, reports CNBC. Just what is the breakdown in cost for the $20 billion? Well, $8 billion will go to the amount of shares directly from Sprint, while the remaining $12 billion will be used to purchase shares from the public. This particular deal will not require a shareholder vote due to the deal’s structure. As to the repercussions (if any) of this in the mobile industry, it is hard to tell – we will just have to sit back and wait. I wonder if Sprint’s CEO, Daniel Hesse, will start looking elsewhere as chances are he will have different a “boss” to report to, so to speak.
