Sprint confirms 70 percent purchase by SoftBank

The third biggest wireless carrier in the US will soon be mostly owned by a Japanese company. Sprint confirmed today that 70 percent of the company will be acquired by Softbank, which will spend a total of $20.1 billion for its new stake in Sprint.

Today's press release said that Softbank will purchase $12.1 billion in existing Sprint stock. Softbank will also purchase new shares in the company that will be worth $8 billion; the deal is expected to officially close by mid-2013.

The press statement says:

SoftBank’s cash contribution, deep expertise in the deployment of next-generation wireless networks and track record of success in taking share in mature markets from larger telecommunications competitors are expected to create a stronger, more competitive New Sprint that will deliver significant benefits to U.S. consumers.

Sprint has been struggling in the past few years as its two biggest rivals, Verizon and AT&T, have been taking the lion share of the wireless market for smartphones in the US. Verizon, AT&T and the nation's fourth largest carrier T-Mobile have all confirmed plans to offer Windows Phone 8-based devices this fall but so far, Sprint has yet to jump in with the Windows Phone 8 bandwagon.

Source: Sprint press release | Image via 20th Century Fox

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fix your grid, stop finding ways to make profit like $10 for each of my line that has lte features but doesnt get lte service. my bill went up $30 more upgrading 3 lines.

smooth3006 said,
Welcome to news that is two days old. Sprint needs to fix their network before the company falls off the maps.

Don't understand how 2 day old rumors can make the news "old" when it was only officially announced today.

Nogib said,

Don't understand how 2 day old rumors can make the news "old" when it was only officially announced today.
this was on android central days ago.

You're easily the worst poster here. This is just another example. The deal was only rumored as of last Monday and wasn't confirmed until today.

Oddly enough, Sprint's common stock surged in price, while Softbank's fell.

As a Sprint subscriber, this is only a good thing. The influx of cash is going to help the continued roll-out of LTE, and provide enough money for the complete purchase of clearwire (extra spectrum/towers/etc).

When I heard the rumor of this on Friday, I was so hoping for a 100% purchase. Softbank has a reputation for not only successful LTE deployment, but also becoming profitable, of which Sprint needs both.

Klownicle said,
Not sure if happy or sad..

I believe I read somewhere that this added capitol is going to be used to expand Sprints LTE network, so if you are using Sprint, then it is something to be happy about.