Last week there was a rumor that Japan’s Softbank were going to buy US mobile carrier Sprint, and now Softbank has confirmed that they will purchase Sprint in a deal worth $20.1 billion US dollars, which is around 1.571 trillion Yen.
The two companies will merge to form a new company, and Softbank will own 70 percent in the new company, and Softbank will purchases $12.1 billion in existing shares and $8 in new shares from Sprint.
“This is a transformative transaction for Sprint that creates immediate value for our stockholders, while providing an opportunity to participate in the future growth of a stronger, better capitalized Sprint going forward. Our management team is excited to work with SoftBank to learn from their successful deployment of LTE in Japan as we build out our advanced LTE network, improve the customer experience and continue the turnaround of our operations.”
The merger of the two companies will make them one of the largest mobile carriers in the world, and it is expected to go through next year after it has met all the required regulatory approval.
Source The Verge