Softbank May Acquire Majority Stake in Sprint Nextel

Sprint has been in the news for all the wrong reasons in the last couple of months. Unlike its bigger competitors, AT&T and Verizon, it’s in a relatively worse financial shape.

Reportedly, it may be in talks with the Japanese mobile carrier Softbank regarding a potential investment which would see the latter acquiring a majority stake in Sprint for more than $12.8 billion.

With the deal, Softbank would have an easy way to enter the U.S. market, while Sprint will get access to Softbank’s deep pockets and finance its network upgrades.

Any such deal would be welcomed by the regulators as it would increase competition in the space which is dominated by AT&T and Verizon. Sprint’s stock price jumped nearly 20% in morning trading, to nearly $6.

Softbank recently acquired eAccess, its rival in Japan, for $1.8 billion to boost its LTE capabilities. It has been expanding aggressively in recent times.

via Reuters

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