Softbank agrees to acquire large stake in Sprint

We heard it last week, and now it’s one step closer to reality. Softbank, Japan’s third-largest cell phone carrier, was in talks to acquire a stake in Sprint late last week. They have now agreed to acquire 70 percent of Sprint, which will cost them $20.1 billion. The deal will probably take until mid-2013 to go through. The upshot of the deal is it provides Sprint with immediate cash, which they can use to play catchup with the larger carriers. Current Sprint CEO Dan Hesse will reportedly stay on to oversee operations, but that can clearly change between now and then. In other minutiae, Softbank will have to start a shell company in order to complete the transaction. The name of the shell company: New Sprint, meaning Sprint will be a subsidiary of New Sprint.

Via Phone Scoop.