It’s official. In the middle of the U.S. night, Japan’s SoftBank Corp. and Sprint confirmed the Number Three Japanese wireless carrier will invest more than $20 billion in Sprint (click here for more information), consisting of $12.1 billion to be distributed to Sprint stockholders and $8 billion of new capital to strengthen Sprint’s balance sheet. Through this transaction, approximately 55 percent of current Sprint shares will be exchanged for $7.30 per share in cash, and the remaining shares will convert into shares of a new publicly traded entity, New Sprint. Following closing, SoftBank will own approximately 70 percent of the Number Three U.S. carrier while Sprint equity holders will own approximately 30 percent of the shares of New Sprint on a fully-diluted basis. The deal is set to close next summer. The questions regarding the disposition of Clearwire were handled like this: “The transaction does not require Sprint to take any actions involving Clearwire Corporation other than those set forth in agreements Sprint has previously entered into with Clearwire and certain of its shareholders.” Notes Sprint CEO Dan Hesse, “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.” Sprint HQ will stay in Overland Park, Kansas, and “New Sprint” will have a 10-member board of directors, including at least three members of Sprint’s current board. Hesse will continue as CEO and as a new board member.

The Daily

Subscribe
Friday–December 13

FCC Launches Update to Broadband Health Map

The FCC updated its Mapping Broadband Health in America platform Friday to include new variables to better examine maternal health. Now, the platform allows users to visualize and survey

Read the Full Issue
The Skinny is delivered on Tuesday and focuses on the cable profession. You'll stay in the know on the headlines, topics and special issues you value most. Sign Up

Calendar

Apr 16
Cablefax 100 Awards Nominations Open November 13th, 2024.
Full Calendar

Jobs

Seeking an INDUSTRY JOB or hiring for one?
VIEW JOBS

In conjunction with our sister brand, Cynopsis, we are offering hiring managers a deep pool of media-savvy, skilled candidates at a range of experience levels and sectors. The result will be an even more robust industry job board, to help both employers and job seekers.

Contact Carley Ashley, [email protected], for more information about posting a job on the website and our Jobs newsletter, sent twice weekly to 85,000 media professionals.