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To buy a two-thirds stake in Sprint (S), Softbank (SFTBF.PK) would need to significantly...

To buy a two-thirds stake in Sprint (S), Softbank (SFTBF.PK) would need to significantly increase its debt, which is already over $10B. While Japanese banks seem willing, a major loan would come just a few years after leverage-fueled acquisitions almost caused Softbank to collapse. And the new debt would be to purchase a company that hasn't made an annual profit since 2006.
Comments (14)
  • Moosh
    , contributor
    Comments (125) | Send Message
    Interesting point.
    14 Oct 2012, 10:36 AM Reply Like
  • mbablitz
    , contributor
    Comments (28) | Send Message
    Airlines do it all the time.
    14 Oct 2012, 12:24 PM Reply Like
  • frankjg
    , contributor
    Comments (9) | Send Message
    But its the American way. Hope it happens.
    14 Oct 2012, 01:27 PM Reply Like
  • Hydro9268
    , contributor
    Comments (20) | Send Message
    Sprint really shouldn't look to merge or acquired any company, or be absorbed by any company. If they truly valued their unique position as the only third carrier in the United States to offer Apple products they would focus on enhancing that, their network and paying down their debt. Anything beyond that is too risky.
    14 Oct 2012, 01:39 PM Reply Like
  • larry1135
    , contributor
    Comments (54) | Send Message
    Sprint (Hesse) said they did not need the money and if that is the case it sounds like they should not accept this offer. If Softbank goes down the tubes then what.
    14 Oct 2012, 04:59 PM Reply Like
  • Retired Expat Investor at M...
    , contributor
    Comments (53) | Send Message
    Unfortunately, I feel the beginning of Sprint's demise.
    After successfully selling out to Japanese at inflated price, current American management may just move on.
    Good Luck, Mr. Son.
    14 Oct 2012, 06:21 PM Reply Like
  • Jawbreakers
    , contributor
    Comments (5) | Send Message
    Maybe they can finally move up to number two position.
    14 Oct 2012, 06:28 PM Reply Like
    , contributor
    Comment (1) | Send Message
    Adding Sprint's debt to Softbanks? Debt is debt either way you slice it. In that one aspect it doesn't make a lot of sense. What are the projections for earnings? All companies carry debt the real bottom line is if they can turn a profit for stock holders.
    15 Oct 2012, 01:02 AM Reply Like
  • W. Walker Jr.
    , contributor
    Comments (271) | Send Message
    So its 8:00AM and official, Softbank acquires 70% of Sprint. I don't know about any other subscribers but I'm not sure how I feel about my communications company being owned by a Japanese Firm...seems like that would be a national security issue of some kind.
    15 Oct 2012, 09:03 AM Reply Like
  • larry1135
    , contributor
    Comments (54) | Send Message
    We have a great relationship with Japan similar to England I don't see that as any kind of national security issue.
    15 Oct 2012, 09:10 AM Reply Like
  • W. Walker Jr.
    , contributor
    Comments (271) | Send Message
    Alrighty then, why not do a sale lease back on our power grid, or what if it was your internet service provider, or cable service provider. We had good relations with Iran at one point as well, should we allow them to buy up US companies?


    If it can be made in America it should, and if it is a core service for daily life, it should be run by an American company.


    Softbank will act in the best interest of Softbank, not the American subscribers. Money is not the only kind of return on investment, I think we can all agree we don't see how this deal makes financial sense. My question is, what is in this for Softbank, if its not tangible monetary returns?
    15 Oct 2012, 09:17 AM Reply Like
  • larry1135
    , contributor
    Comments (54) | Send Message
    We've never had a relationship with Iran that was on par with England or Japan. It is a global market and economy plus, Japan has quite a few plants in America that employs American's to make automobiles. I don't see any national security issues as you had stated before.


    American companies act in their best interest as well by out sourcing an example would be Apple. So, of course Softbank will act in its own best interest which would be for Sprint and Clearwire to succeed not fail.
    15 Oct 2012, 10:06 AM Reply Like
  • W. Walker Jr.
    , contributor
    Comments (271) | Send Message
    Well isn't that just wonderful.


    If it can be made in America it should be made in America.


    Hardly anything is made here anymore, what happens when these wonderful relationships breakdown? These close ties you speak of are brief in the grand scheme of history. I am happy that we can all live together so peacefully.


    Just an FYI, I do consider it a national security issue that our cellphones, computers, tv's etc. are made outside the united states. I know it sounds conspiracy theory, but the time will come when our friends are not so friendly. Are we prepared? Why attack a country when you can just buy it up? bug their technology...


    Why occupy when you can just control the goods?


    Perhaps I'm tired, or perhaps just sick of seeing American companies being taken over by foreigners.


    This is all rhetorical.
    15 Oct 2012, 10:06 PM Reply Like
  • larry1135
    , contributor
    Comments (54) | Send Message
    15 Oct 2012, 11:46 PM Reply Like
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