When SoftBank bought Sprint almost two years ago, the company did buy all of Sprint, it was around 70% ownership of the, then, third largest carrier in the US. Recently, SoftBank has bought more shares of Sprint, and in doing so have raised the market value of the company. Adding about $6.7 billion value to the company since August 7th. Bloomberg notes on August 28th, that every day since August 10th, SoftBank had purchased shares in Sprint. Which then rose their stake in the company to about 82%. However, the Japanese company has stated numerous times that it intends to keep their stakes in Sprint below 85%. Which would trigger a tender offer for the remaining shares. That’s a condition of SoftBank’s $21.6 billion deal, in which they acquired Sprint in late 2013.
Last year, when the talks with T-Mobile and their parent company, Deutsche Telekom had broken down. The chairman of Sprint and SoftBank, Masayoshi Son, had thought about selling his stake in Sprint. But since then he’s “seen the light at the end of the tunnel” so to speak. And with Marcelo Claure in charge of Sprint, they are starting to see a resurgence. Although they did drop to number four in the country thanks to T-Mobile’s momentum under John Legere. Claure has worked on cutting back some of the costs that were plaguing Sprint. They actually burned through $2.2 billion last quarter alone. Claure has also turned their adds around. Instead of losing hundreds of thousands of customers each quarter, they are starting to add customers again. Something that the company hadn’t done in quite a while.
There’s still a long way to go for Sprint, but the rising share price and show of confidence from SoftBank and their investors are going to help out Marcelo Claure in the long run. Sprint has already extended Claure’s contract through 2019. Showing that not only does Son have confidence in the company he’s bought, but also the man he put in charge to run the place.
On August 7th, Sprint’s stock was around 3.37. At the time of writing this on September 1st, the stock was at 5.09.
The post SoftBank’s Recent Share Buys boost Sprint Stock appeared first on AndroidHeadlines.com |.
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