Softbank is snapping up 70% of Sprint by providing $8 billion in new capital and purchasing $12.1 billion worth of Sprint stock at $7.30 per share in cash. The remaining stock will be converted to equity in a new publicly-traded company.
Sprint said it plans to use the proceeds for its Network Vision strategy, which aims to consolidate multiple network technologies into one network, with the goal of "increasing efficiency and enhancing network coverage, call quality and data speeds."
Sprint shares were down 1.5% at $5.64. Clearwire (CLWR), which is partially owned by Sprint, is up more than 16%.
Amazon (AMZN) shares were up slightly amid speculation the company is looking to acquire part of Texas Instruments's (TXN) mobile chip business. Israeli newspaper Calcalist reported that Amazon is in late-stage talks with TI about a potential deal for the operations that manufacture the primary chip used in Amazon's devices, such as the Kindle. Amazon is also rumored to be planning to eventually launch its own smartphone. The report said a deal would probably be worth "billions of dollars." Amazon shares were last quoted at $242.61, up 25 cents, while TI's stock was adding more than 3% at $28.11.
American Tower (AMT) jumped 4.61% to $75.50 as the Sprint/Softbank deal keeps a strengthened wireless carrier in business. The other major wireless tower companies, Crown Castle International (CCI) and SBA Communications (SBAC) were seeing strong gains as well. Interested in more on Amazon? See TheStreet Ratings' report card for this stock. --Written by Chris Ciaccia in New York >Contact by Email. Follow @Commodity_Bull
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
24/7 market commentary from Jim Cramer and 20+ veteran Wall Street gurus. Get access to the latest trading ideas on stocks, options, and ETFs as well as a real-time forum to see the pros exchanging their investment ideas.
- Jim Cramer + 20 Wall Street pros
- Intraday commentary & news
- Real-time trading forum
- Actionable trade ideas
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV