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Japanese Carrier SoftBank Pays $20.1 Billion to take 70% Ownership of Sprint

Discussions between SoftBank and Sprint were confirmed last week to be about a substantial investment by the Japanese company in the Now Network. To start the week the companies have announced that the deal has been finalized and that SoftBank now owns a majority share (70%) in Sprint. SoftBank shelled out a cool $20.1 billion to invest in Sprint and move them forward here in the States.

One of the biggest parts of the deal is to provide Sprint with $8 billion in cash “to enhance its mobile network and strengthen its balance sheet.” You can expect Sprint to use most of that on their upcoming LTE network to try and catch up with Verizon and AT&T. SoftBank also hopes that this brings a “more competitive New Sprint that will deliver significant benefits to U.S. consumers.”

If you’d like to watch the press announcement that went up at 4AM Eastern, we have it for you below.

Video streaming by Ustream

Via: Sprint

  • I hope this makes sprint good enough to abandon VZW!

  • Abe Villa

    I’ve been monitoring sprint closely in the past 8 months or so. And I kinda figured about 2 months ago that sprint would begin to make some advancements. Here in Chicago when I picked the gnex I was sacrificing slow 3g and no lte. But I had high hopes, and I very well pleased with the now network. The 3g is has improved and lte… Well very excited! I get 25mbps up and 12mbps down. I left Verizon, best decision ever made.

  • a.youth.in.Asia

    CA-CHING! coming from a company named SoftBank makes me think Sprint just got a bailout or a loan.

  • OnlyNexus

    Yay, another US company with majority foreign ownership 🙁

    • You mean like T-Mobile and Verizon? The only American major carrier is AT&T and look at how awesome they are /s

      • SemahjLam

        thats why he said another

  • chris125

    I hope this is what sprint needs to better their network and become a competitor to the big 2. Can’t wait to see what/if softbank can do anything to help sprint

  • Finally real service …

  • thehbster

    If they have both a good network & unlimited data, one or the other won’t stay that way for long I bet.

    • chris125

      Well it will take awhile to build the network plus at first they want to sway customers over so I can see them keeping unlimited until they become a real threat to the likes of att and verizon, then that would be when they start acting like those 2.

  • David Hussey

    If they keep the unlimited data plan and can vastly improve coverage with this newfound cash, VZW has some things to worry about, my business included.

    • David Arensdorff

      I was thinking the same thing! All Sprint needs is a good swift kick in the ass to get themselves in gear. Hopefully, this is the kick they were waiting for! Can’t wait to see what new developments Sprint has in store…

    • Bigwavedave25

      Agreed. If more cash means more towers/coverage than at least there will be a good alternative out there other then AT&T. That was my only problem with Sprint when I had them… if you got to far from an interstate you were screwed for reception.

      • chris125

        I hope this and the tmo/metro merger do that for both of those companies. I mean competition is a good thing especially if the big 2 start losing customers because of it, maybe then they wont be so greedy

    • And once they get up to par with ATT & Vzw, you can expect the same type of pricing and data plans. That’s just how it goes in the business world. They won’t do it now because they’d be shooting themselves in the foot.

    • Mallahet

      Add decent global rates into the mix, and they can have my money.

  • TheWenger

    I’m ready for one year from now, when my contract is up with VZW and anew 2013 Nexus will be coming out, and I’ll be heading to Sprint, hopefully still with unlimited data.

    • michael arazan

      I’d like to see sprint get those mobile speeds they have in Japan since a Japanese mobile company is buying them. Can you imagine 60-80 mbps that they get over there here,would make sprint very popular. Japan also gets live television on their phones too, hopefully the new owners can help sprint do something different and new.