Softbank to buy US based Sprint Nextel

Softbank to buy US based Sprint Nextel

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Softbank, the Japanese based telecom operator, is now attempting a $25 billion buy-in to the US telecom market. The deal will also include the takeover of US based Sprint Nextel. If the deal works out then this could result in one of Japan Inc’s biggest ever overseas deals.

Investors discouraged the takeover, as Softbank shares fell on Friday, however on October 11, 2012 Sprint Nextel confirmed that it was in talks with Softbank. This venture could help the Japanese firm to be counted in one of the top three mobile giants globally. The shares of Sprint surged 14.3% to close at $5.76 in US trade on October 11, 2012. Sprint in a Statement said, “Although there can be no assurances that these discussions will result in any transaction or on what terms any transaction may occur, such a transaction could involve a change of control of Sprint”.

Softbank, earlier this month said that it would acquire smaller rivals eAccess Ltd for US $2.3 billion. The company has already ventured into large deals, buying the Japanese arm of Vodafone in the year 2006. There is also speculation among analysts that Softbank could be playing at a marriage between Sprint and T-Mobile, to compete with the formidable partnership of AT&T and Verizon.