Image credit: Danny Choo
Some
surprising things have happened surrounding Sprint over the past few
days. According to comments made by Softbank CEO Masayoshi Son in an
interview with the Wall Street Journal, we may not have seen the last of
them either.
Just a few days ago, in a move that
almost nobody expected to happen,
Sprint acquired Clearwire, picking up a large chunk of spectrum in the process. Since Sprint was in the process of closing the deal on its
recent acquisition by Softbank, it didn’t seem likely that they would be buy any companies during that time period.
After
that acquisition, it would be reasonable to expect that no new
purchases would be made for a while, but Son’s comments in a recent Wall
Street Journal interview seem to point otherwise. Son said “We
shouldn’t rule out any opportunity or alternative.” When pressed for
details, Son wouldn’t go into specifics, simply saying “I will be
aggressive—that’s all.”
While Sprint was already in place as the
third largest wireless carrier in the U.S., behind Verizon and AT&T,
a Softbank buyout of MetroPCS would help Sprint to close the gap
between themselves and AT&T. Softbank’s acquisition of Sprint has
already given the company money it desperately needed to strengthen its
position.

Before
Softbank paid $20 billion for a 70 percent stake of the company, Sprint
was looking at a costly network upgrade that would likely be slowed
down by lack of funding. Now they are in a better position to upgrade
their network as well as take any other opportunities that may come
along.
Softbank will take its position as majority shareholder of
Sprint over the course of a few steps. First, Softbank will buy $3
million worth of bonds that convert to Sprint shares and pay the rest in
two later installments.
CEO of Sprint, Dan Hesse said “Think of
it almost as an insurance policy,” adding “It’s some money in the bank
until the deal closes that, for some reason, if we wanted to do
something we could.” Given the events of the last week, it’s looking
more and more likely that Sprint may indeed find a use for that money,
whatever it may be.
Do you think that a Softbank acquisition of
MetroPCS could happen? Or was Softbank’s CEO merely thinking out loud
during the interview?