Sprint Nextel cleared its last hurdle in being acquired by Japan's SoftBank. The Federal Communications Commission approved SoftBank's $21.6 billion merger with Sprint Nextel and paved the way for the new entity to challenge wireless giants AT&T and Verizon.
The decision, issued Friday, also allows Sprint to purchase the remaining $3.7 billion in shares of Clearwire, which owns a large amount of wireless spectrum that the new Sprint needs to expand and improve its data network in the U.S. Sprint already owns a majority stake in the company.
"After thorough review, the Commission has found that the proposed SoftBank-Sprint-Clearwire transactions would serve the public interest," said acting FCC chairwoman Mignon Clyburn in a statement. "The increased investment in Sprint's and Clearwire's networks is likely to accelerate deployment of mobile broadband services and enhance competition in the mobile marketplace, promoting customer choice, innovation and lower prices."
SoftBank, a Japanese holding company with investments in Internet and wireless carrier businesses, initially offered to buy Sprint in October with a proposal to buy 70% of Sprint for $20 billion. But it was forced to raise its offer price after running into a competing bid from Dish Network, a U.S. satellite TV service provider that wants to enter the wireless business to diversify its offerings.
Source: NewsonJapan
