
Before I start talking about this story, let me point out that Sprint website crashed when the news hit.
The news appears to have crashed the Sprint website. At least for now the site is only appearing in plain text and is taking time to load any updates, such as the link for the webcast (which it hastily announced at 2am Eastern time) to announce the news. – Seeking Alpha
I think their first demand in negotiations was a new server. Now let’s talk about this crap.
Sprint, the cell phone company that is neither AT&T or Verizon, is getting bought by the Japaneez. Which just goes to show you that America literally fails at everything nowadays. Now, the first thought you might be having is “what will I have for dinner tonight?” Well, I can’t answer this, but I can tell you what the big deal about this news is.
SoftBank will invest $20.1 billion in Sprint, consisting of $12.1 billion to be distributed to Sprint stockholders and $8.0 billion of new capital to strengthen Sprint’s balance sheet. Through this transaction, approximately 55% 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% and Sprint equity holders will own approximately 30% of the shares of New Sprint on a fully-diluted basis. — Sprint press release
In human-speak that means “Softbank is saving Sprint’s ass.” For pretty much ever, there’s been two cell phone companies in America and some other small mom and pop wireless companies. Sprint was number three, but it sucked and didn’t have any money to pay off debts. Now, it has a sugar daddy to help it remain at the number three spot.