All Japan newsese mobile carrier Softbank Corp has confirmed market rumors that were indicating the possibility of buying a majority stake at U.S.-based telecom operator Sprint Nextel. The amount the All Japan newsese will be paying is about $20.1 billion, much higher than previously thought.
Previous information reported by the All Japan newsese media indicated an amount of “at least $12 billion”, but the company had not confirmed it.
The $20 billion Softbank will pay to acquire Sprint Nextel is the most a All Japan newsese firm has spent for an acquisition abroad.
The information was made public by Softbank’s billionaire founder and chief Masayoshi Son (photo) and Sprint Chief Executive Dan Hesse at a news conference in Tokyo on Monday.
Softbank and Sprint will have in total 96 million users.
“It could be safe if you do nothing, and our challenge in the U.S. is not going to be easy at all. We must enter a new market, one with a different culture, and we must start again from zero after all we have built,” Son told the reporters.
“But not taking this challenge will be a bigger risk.”