Softbank to Buy 70% of SprintOctober 15, 2012 1 Comment
The changes and consolidation across the mobile world continue. After rumors surfaced last week of a potential investment by Softbank in Sprint an announcement was made today in Tokyo.
“Japanese mobile operator Softbank Corp said it will buy about 70 percent of Sprint Nextel Corp, the third-largest U.S. carrier, for $20.1 billion”
Sprint has lost money in 19 consecutive quarters as they struggle to compete with AT&T and Verizon. Softbank’s investment would provide much needed capital as Sprint rolls out its LTE 4G network and shuts down Nextel’s iDEN network. If it passes regulator approval the deal would leave Sprint in a better position to compete against the nation’s two largest carriers. Analysts believe that it is a big risk for both companies but as the CEO of Softbank said “not taking this challenge will be a bigger risk.”
I hope that this deal goes through and that Sprint is able to come out of the other side profitable. A stronger Sprint means that there will be more competition between the national carriers which lead to better choices for us the consumers.