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.
[Reuters via Android Police]
It would be cool if we could make free International calls to Japan or even be able to hope on their network if we go to Japan. I have a few friends living in Japan right now.
The idea of this merger makes me hope neat tech comes from across the ocean.
At&t and Verizon don’t hold a candle to Sprint. Capped data, and throttled data…ftl
Softbank doesn’t look to be in too much better shape than Sprint.
They better save some of that money if they want Clearwire as well.
I hope they figure out the arrangements!
Won’t someone think of the LTE!?!?!
I just want it to come to my area. As long as it is still #1 priority I’m ok with this.
If such a merger results in the imposition of a more consistent product for Sprint, greater quality, and the kind of customer service Japanese companies embody, then it’s a good move.
If it is simply to make more cash for Softbank (financing debt), I am opposed.
More Official now, Going to be announced tomorrow
This helps us sprint consumers how?
If Sprint just had a few more towers….. Argh!
2 words … OUT SOURCED
HIGHER PRICES ,WHY WOULD AN IN DEBT COMPANY BUY ANOTHER IN DEBT COMPANY
EARTH WORM JIM …DOW THE TUBES
I just want LTE in phoenix by the end of the year 2012, if not, i’m sorry but I will have to fire you sprint. That is the final warning sprint, because all my 4 lines are out of contract and you cannot force me to stay. That is my final word.