Sprint and SoftBank both have just confirmed that SoftBank has purchased a 70% controlling interest in Sprint for a total of $20.1 billion. The transaction is pending approval and is estimated to go into effect sometime mid-2013, after being heavily reviewed by both Sprint’s shareholders as well as the FCC.
If the deal were for whatever reason to fall through on SoftBank’s end (as the AT&T acquisition of T-Mobile did late last year), SoftBank would be liable for $600 million to Sprint. If Sprint’s shareholders don’t agree to the acquisition or it falls through for whatever reason on their end, Sprint would be liable for that $600 million to SoftBank.
The deal would make the new SoftBank/Sprint entity the single largest carrier in the world, and would give Sprint a much larger ability to build out their advanced 4G LTE network to better compete with Verizon and AT&T in the future.
Source: The Verge