As Softbank’s deep pockets have suddenly opened up a new challenger to Verizon & AT&T, it’s only natural for Sprint & Softbank to make an official statement confirming the major news. In a press release unveiled this morning, Softbank announced it will acquire Sprint Nextel for a whopping $20.1 billion ($12.1 billion in cash consideration & $8 billion in capital). The major highlight of this is the deal is the fact this will give Softbank a 70% stake of Sprint and 30% ownership, effectively giving it full control over the Now Network. The hope of this deal is Softbank will effectively give Sprint a better platform to use in rolling out not just its LTE network, but an LTE network with a significantly better structure than its competitors. Here’s Sprint CEO Dan Heese:
“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. Our management team is excited to work with SoftBank to learn from their successful deployment of LTE in Japan as we build out our advanced LTE network, improve the customer experience and continue the turnaround of our operations.”
Of course all of this will be pending regulatory approval– so hopefully we won’t see some sort of mishap like we’d seen before. Hit the break for the full presser.