The U.S. Department of Justice is reviewing Softbank’s $20.1 billion takeover of Sprint for national security and policing concerns and has asked the FCC to hold off on any decision until the review is complete. Though this sounds scary and dire, Sprint and Softbank had expected this review to occur. It’s standard procedure with foreign investments of this type and scale
As reported last week, Japanese carrier Softbank has acquired a 70% stake in Sprint Nextel – the third largest carrier in the US for $20.1 billion. It’s the most a Japanese company has spent on an acquisition.
Softbank will buy $8 billion in shares directly from Sprint, and another $12 billion from existing stakeholders at $7.30 per share, which works out to a premium of 27% premium from Friday’s close.
AllThingsD has just reported that Sprint – the third largest carrier in the U.S. and Apple’s iPhone carrier partner has confirmed it is in talks with Japanese carrier Softbank about a possible deal.
Sprint has issued the following statement to AllThingsD: