Japan’s SoftBank is investing $20.1 billion to acquire a 70 percent stake into Sprint, which is the 3rd largest cellular carrier in the United States. This will no doubt shake up the current US carrier as 12.1 billion will go to shareholders, and $8 billion will go into new capital. Both Board of Directors have approved the deal, so it looks like SoftBank will now have access to 96 million customers in Japan and the US, which will put them closer to AT+T (#1) and Verizon (#2).
So you have to wonder, could a Canadian wireless carrier be next for SoftBank to acquire?
Chances are slim that Bell, Rogers or TELUS would entertain a take over bid, however the new wireless players could make good use of a cash infusion. There has been a lot of talk in the market that we will see a consolidation between Mobilicity, Public Mobile, and WIND Mobile, but time will tell if that does take place in some shape or form.
For now we now have choice when it comes to a wireless service provider, besides the Canadian government wouldn’t allow over 51% foreign ownership.
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