5G Technology World

  • 5G Technology and Engineering
  • FAQs
  • Apps
  • Devices
  • IoT
  • RF
  • Radar
  • Wireless Design
  • Learn
    • 5G Videos
    • Ebooks
    • EE Training Days
    • FAQs
    • Learning Center
    • Tech Toolboxes
    • Webinars/Digital Events
  • Handbooks
    • 2024
    • 2023
    • 2022
    • 2021
  • Resources
    • Design Guide Library
    • EE World Digital Issues
    • Engineering Diversity & Inclusion
    • Engineering Training Days
    • LEAP Awards
  • Advertise
  • Subscribe

Softbank Pays $20B to Gain Control of Sprint

By Staff Author | October 15, 2012

Japanese operator Softbank is shelling out $20.1 billion to acquire a controlling 70 percent stake in Sprint, a transaction that will give Sprint much-needed cash to compete with AT&T and Verizon Wireless.

The buyout buoys Sprint’s heavily indebted balance sheet with $8 billion in new capital. 

The operator won’t get more spectrum or new subscribers out of the deal, the key benefits of T-Mobile USA’s recently announced merger with MetroPCS.

“This is a transformative transaction for Sprint that creates immediate value for our stockholders, while providing an opportunity to participate in the future growth of a stronger, better capitalized Sprint going forward,” Sprint CEO Dan Hesse said in a statement. 

Softbank’s capital infusion will help Sprint finance its network overhaul and LTE deployment, key parts of Hesse’s plan to turn Sprint around after its ruinous 2005 merger with Nextel. The Nextel transaction resulted in years of heavy losses and customer defections, trends that Sprint has only recently begun to reverse. 

Softbank will pay $7.30 a share for about 55 percent of Sprint’s current stock, and Sprint shareholders will receive the remaining $12.1 billion from the transaction. The remaining shares will become part of the new company, called New Sprint. 

When the transaction closes, Sprint’s shareholders will hold 30 percent of New Sprint, with Softbank controlling the remaining 70 percent. 

The investment has already been approved by both companies’ boards of directors. The transaction is expected to close in mid-2013 after it gains approval from the Justice Department and other regulators. 

Sprint will retain its current headquarters in Overland Park, Kan. after the deal is complete. Hesse will serve as CEO of New Sprint and the company’s 10-member board of directors will retain at least three current members of Sprint’s board. 

The announcement early this morning refuted analysts’ predictions that Softbank was unlikely to go after a majority investment in Sprint because of potential government concerns over foreign ownership. 

The buyout does not include a deal for Clearwire, another source of analyst speculation. Softbank said in its announcement today that the deal “does not require Sprint to take any actions involving Clearwire” other than those hashed out under the two companies’ previous agreements.

T-Mobile USA’s merger with MetroPCS put pressure on Sprint by creating a stronger fourth-place competitor. The two companies will have a combined subscriber base of about 42.5 million customers, inching closer to Sprint’s 56 million subscribers. 

Sprint’s subscriber base remains far behind that of AT&T and Verizon, the country’s two largest wireless providers. Verizon Wireless has about 111 million subscribers and AT&T has about 105 million customers.

Sprint’s LTE network lags behind Verizon but appears to be catching up to AT&T. Sprint is working to launch in 200 markets over the coming months. That could put it ahead of AT&T, which currently has its LTE network live in 77 markets. Even with that aggressive push, Sprint’s LTE footprint will still be dwarfed by Verizon’s LTE network in more than 400 markets. 

Related Articles Read More >

eSIM
eSIM eases changing carriers for phones and IoT
QoE and QoS comparison
Benchmarking in 5G: More important than ever
iPhone 12
I bought a 5G phone, now what?
6G
Key takeaways from 6G Symposium

Featured Contributions

  • Overcome Open RAN test and certification challenges
  • Wireless engineers need AI to build networks
  • Why AI chips need PCIe 7.0 IP interconnects
  • circuit board timing How timing and synchronization improve 5G spectrum efficiency
  • Wi-Fi 7 and 5G for FWA need testing
More Featured Contributions

EE TECH TOOLBOX

“ee
Tech Toolbox: Internet of Things
Explore practical strategies for minimizing attack surfaces, managing memory efficiently, and securing firmware. Download now to ensure your IoT implementations remain secure, efficient, and future-ready.

EE LEARNING CENTER

EE Learning Center
“5g
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for EE professionals.

Engineering Training Days

engineering
“bills
5G Technology World
  • Enews Signup
  • EE World Online
  • DesignFast
  • EDABoard Forums
  • Electro-Tech-Online Forums
  • Microcontroller Tips
  • Analogic Tips
  • Connector Tips
  • Engineer’s Garage
  • EV Engineering
  • Power Electronic Tips
  • Sensor Tips
  • Test and Measurement Tips
  • About Us
  • Contact Us
  • Advertise

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy

Search 5G Technology World