SoftBank, one of Japan’s largest mobile phone and Internet service providers, plans to acquire US phone carrier Sprint in a multi-billion dollar deal. The Japanese firm, which is one of the country’s leading providers of mobile phone service and mobile Internet connectivity, previously offered $20.1 billion for the US-based company.
The offer received interest from the large US mobile phone network, but faced stiff competition from rival US firm Dish Network. The Dish Network Corporation is one of the United States’ largest direct-broadcast satellite television providers, boasting over 14 million subscribers in the United States through its satellite TV network.
In response to the competition for Sprint Nextel, SoftBank recently increased its bid to $21.6 billion. The bid values Sprint Nextel’s shares at $7.65 each – $0.30 ahead of the company’s current $7.35 share price. The deal will give SoftBank control over 78 percent of Sprint’s shares, making it the largest shareholder in the company.
SoftBank is one of Japan’s largest telecommunications companies, with interests in the country’s mobile phone service, Internet, fixed line, and finance industries. With over 22,000 employees in Japan alone, the firm is one of East Asia’s largest telecoms, boasting a market capitalization of $43.52 billion as of March 2011.
Despite increasing its bid, the Japanese telecoms giant faces an enticing offer from the Dish Network to compete with. The US-based cable television company offered Sprint’s shareholders a share acquisition deal worth over $25 billion. Sprint plans to discuss the potential acquisition deal with Dish Network executives on June 25.
Softbank’s plans for Sprint differ little from the company’s own vision. The Japanese firm will continue to focus on Sprint’s goals of becoming an all-LTE carrier by 2017, as well as continuing its operation of Clearwire and other Sprint subsidiaries.
