SoftBank Group announced that it intends to increase its stake in Sprint through open market transactions or otherwise. However, Softbank does not intend to increase its ownership of Sprint outstanding common stock to 85% or more as a result of these purchases.
Masayoshi Son, Chairman & CEO of SBG and Chairman of Sprint, said, “We are entering an era where billions of new connected devices and sensors will come online throughout the United States. Continuing to own a world class mobile network is central to our vision of ubiquitous connectivity. Sprint is a critical part of our plan to ensure that we can deliver our vision to American consumers and we are very confident in its future.
At the same time, T-Mobile announced that it has ceased talks to merge with Sprint, as the companies were unable to find mutually agreeable terms.
“The prospect of combining with Sprint has been compelling for a variety of reasons, including the potential to create significant benefits for consumers and value for shareholders. However, we have been clear all along that a deal with anyone will have to result in superior long-term value for T-Mobile’s shareholders compared to our outstanding stand-alone performance and track record,” said John Legere, President and CEO of T-Mobile US.