More details have been uncovered about Softbank’s plans with Sprint, including the Japanese company’s plans to try and borrow $23 billion in order to finance the purchase of a 70% stake in the company. This is according to anonymous sources from Reuters, who “have direct knowledge of the matter.”
However, it seems that Softbank has run into a bit of a snag, as it might have some difficulty borrowing such a large some of money, since it is already $10 billion in debt itself. Combine that with Sprint’s $15 billion of current debt, and that’s quite a lot of risk for the Japanese company to take on.
Apparently, the deal with Sprint is being heavily pushed by Masayoshi Son, who owns Softbank. He believes that the strong yen and the current state of the US wireless market makes this a deal he can’t refuse – and he might also have his eye on Clearwire, as well.
In any case, I still stand by my assessment yesterday that this deal would be good news for Sprint and solidify its position as a strong contender against AT&T and Verizon. Now, it’s just a case of Softbank finding enough change in its couch cushions to proceed.