SoftBank Is Preparing To Sell A Majority Of Its Stake In T-Mobile US

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SoftBank is said to be preparing a deal to sell a big portion of its stake in the new T-Mobile US – post the Sprint merger.

According to those familiar with the situation, SoftBank is looking to sell $20 billion of its $31 billion stake in the company. This would give Deutsche Telekom an even larger stake in the company. While allowing SoftBank to raise capital.

SoftBank currently owns about 25% of T-Mobile US

After the merger with Sprint completed, SoftBank gained a 25% stake in the new company, T-Mobile US. But it is now looking to sell about two-thirds of that share to Deutsche Telekom. Giving it an even larger stake in the company. And it would allow the German company to consolidate the unit's financial results.

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SoftBank would then look to sell shares in a secondary offering, and retain a smaller stake itself. And this deal could be announced as soon as this week.

The company only got this share of T-Mobile this year – really, just last month. After the US approved of the sale of Sprint to T-Mobile. SoftBank's founder, Masayoshi Son is currently looking to sell about $45 billion in assets himself, to raise cash so he can buy back shares and pay down SoftBank's debt.

According to Atul Goyal, a senior analyst at Jeffries Group, "if SoftBank Group can renegotiate that sale, it will reduce pressure on SoftBank Group to sell its stakes in Alibaba or SoftBank Corp."

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This comes after SoftBank lost a ton by buying Sprint

A few years ago, Masayoshi Son bought a controlling stake in Sprint (over 70% ownership). With the plan being to then purchase T-Mobile US and combined the two. But the Obama Administration was not going to let that happen. And during those few years, Son and SoftBank lost a fortune on Sprint. Losing nearly half of what the company spent on Sprint.

So this deal to get T-Mobile to purchase Sprint was huge for Son and SoftBank, and very much needed.

However, now that SoftBank is looking to sell a substantial piece of its stake in T-Mobile US, it looks like SoftBank doesn't really want a piece of the US any longer. SoftBank owns a ton of companies, though most of them are not controlling stakes. Like Uber, ARM, Alibaba to name a few. But none of the shed money as quickly as Sprint did. Which is why Sprint had to merge with T-Mobile, or it would likely go out of business fairly quickly.

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