Reports are saying that Japan’s SoftBank Corp, who acquired US mobile giant Sprint last year, is finalizing the financial details that would see it acquire another US mobile carrier, T-Mobile. If the deal pushes through, they would become the world’s second largest mobile carrier in terms of revenue and will push past US rivals Verizon and AT&T.
Sources are saying that SoftBank Chief Executive Officer Masayoshi Son will be making a formal offer for T-Mobile by June or July this year. There are also reports that Sprint’s Chief Financial Officer Joe Euteneuer and Treasurer Greg Block have already met with six banks, including Goldman Sachs,Citigroup,Bank of America, and JPMorgan to ensure that they will be financially capable when the offer will finally be made. What Sprint is also negotiating now with Deutsche Telekom as to who will be running the company, since they have 67% ownership of T-Mobile. A name that has been thrown around is current T-Mobile Chief Executive John Legere.
Sprint has been trying to convince US regulators that the mobile carrier industry will only be helped by this consolidation as it will foster even better competition against Verizon and AT&T, the country’s top carriers. The estimated amount for the newest acquisition is around $20 billion, just a little below the $21.6 billion that Softbank paid for Sprint. If this deal pushes through, Son is a step closer towards fulfilling his goal of creating the world’s largest mobile Internet company.
[ via Reuters ]
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