Softbank to reduce its stake in T-Mobile
The Japanese tech giant has previously announced a range of measures to try and raise a reported $41 billion to lighten its debt load and boost its share price
Japanese technology giant, SoftBank is reportedly in talks with Deutsche Telekom to sell down its stake in the newly merged T-Mobile US.
Softbank is the principal stakeholder of US carrier Sprint, which merged with T-Mobile in a $26.5 billion deal that created the US’ third largest telco.
According to a report in The Wall Street Journal, Softbank is discussing strategies to reduce its stake in the newly merged entity. Earlier this year, Softbank revealed plans to sell off around $41 billion of what it deems non-core assets, in order to reduce its debt pile and buoy its share price.
Analysts had speculated that Softbank may opt to reduce its stake in web giant Alibaba as a way of raising some quick cash. However, reducing the size of its stake in T-Mobile alos now appears to be a key consideration.
The newly merged T-Mobile is the US’ third largest telco, and now has the requisite scale and scope to challenge the country’s ‘big two’ operators, namely Verizon and AT&T, for supremacy in the US’ fledgling 5G market. Sprint’s existing 5G spectrum portfolio has been crucial to launching 5G in the States and has given T-Mobile a decided edge in the race to rollout services.