Sprint today confirmed that they're discussing a "substantial investment" by Japan's Softbank and that "such a transaction could involve a change of control of Sprint". Nothing has been nailed down just yet, but that's still a very spicy possibility. Here is Sprint's statement in full.
"Sprint (NYSE: S) today confirmed that it is currently engaged in discussions with Softbank regarding a potential substantial investment by Softbank in Sprint. Although there can be no assurances that these discussions will result in any transaction or on what terms any transaction may occur, such a transaction could involve a change of control of Sprint. Sprint does not intend to comment further unless and unti l an agreement is reached."
An anonymous source told Reuters that the figure for a majority stake was somewhere in the area of $12.8 billion. While I doubt that an investment from Japan would mean that Sprint would necessarily get some of the super-sweet devices that are released over there; in fact, some Japanese media see this deal as a good way of getting American phones into Softbank stores.
I'm curious to see what kind of strategic direction Softbank would take Sprint in. Sprint was looking at making a counteroffer on MetroPCS, but failing that maybe outside investment is necessary to speed upLTE coverage expansion.How do you guys think a Softbank-controlled Sprint would differ from the current set-up, if at all?
via: Reuters
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