Japanese telecoms group Softbank is in talks to acquire a majority stake in US telco Sprint, in a deal which is thought to be worth over Y1trn (US$12.8bn), according to a number of reports. When contacted, both companies refused to comment on the…
Japanese telecoms group Softbank is in talks to acquire a majority stake in US telco Sprint, in a deal which is thought to be worth over Y1trn (US$12.8bn), according to a number of reports.
When contacted, both companies refused to comment on the speculation, but media reports citing sources familiar with the matter have said that Softbank is looking to buy two thirds of the company. Estimations of the size of this deal have ranged between Y1trn and Y1.5trn (US$19bn).
The potential deal would give Softbank access to the US and Sprint better capitalisation in a competitive market, according to industry speculation.
Both companies have been linked with other M&A activity this month.
Softbank recently agreed to purchase rival Japanese telco eAccess for US$2.3bn, a transaction which represents significant consolidation for the Japanese market.
Sprint is rumoured to be considering a rival bid for MetroPCS, which has agreed to merge with T-Mobile USA. Sprint’s board came close to buying MetroPCS in February for a reported US$8bn but backed out reportedly hours before the companies were due to announce the agreement due to cash commitments to its Network Vision upgrade project.
Sprint is the third-largest operator in the US market, valued at US$15,12bn as of 10 October.
