Japanese mobile operator Softbank Corp said on Monday it will buy up to 70% of Sprint Nextel Corp, the third largest U.S carrier for about $20.1 billion.
The deal announced jointly with Sprint CEO Dan Hesse, will provide Softbank entry into a U.S market:
"This is pro-competitive, pro-consumer in the United States because it creates a stronger Number 3 to compete with the duopoly of AT&T and Verizon. When we look at what Softbank has accomplished in Japan with the Number 3 carrier, it's something that we can learn from. A terrific track record. And we can also learn in terms of deployment of technologies like LTE, LTE-TD, which Softbank has already implemented, we're hoping to implement in the United States."
Analysts have said that Softbank buying a 70% stake in Sprint for $20 billion would imply the No.3 U.S wireless company was worth about $28.6 billion, some two-thirds greater than its market capitalization at Friday’s close.
The companies said Hesse would remain as CEO of Sprint
