Today SoftBank (which is not a bank) acquired 70 percent of Sprint. What does this mean for Sprint? Sprint gets a nice piece of change from Softbank, and according to reports Software Bank is willing to cough up $20.1 billion. This is cash Sprint definitely needs to help that struggling network. Now hopefully Sprint can compete with Verizon and At&t.
In a joint press conference Monday with Sprint CEO Dan Hesse, Softbank’s billionaire founder Masayoshi Son said it was imperative to push overseas at a time when Japan’s own market, with its population declining and its economy stagnant, leaves little chance for growth. Softbank has a net debt of about $10 billion and it needed several major loans to finance the deal, but the strong yen gives the company greater purchasing power. The corporation’s stock plummeted in recent days after rumors of the deal leaked.
“When we make a challenge, usually risk comes along with it,” Son said. “I know it’s not an easy path to go business-wise.” But then Son noted Japan’s low birthrate and added, “However, without challenges [into new markets] we may face even bigger risks.”
