How Will Softbank (SFTBF) Stock React To Deal For T-Mobile US (TMUS)?

NEW YORK (TheStreet) -- Shares of Softbank (SFTBF) are up 1.50% to $74.40 after it was reported that the company reached a basic agreement to acquire T-Mobile US (TMUS) from German parent Deutsche Telecom (DTEGY), paving the way for a merger between the fourth-ranked U.S. mobile carrier and rival Sprint (S), the Nikkei reports.

The two sides are still working out details, and the deal needs clearance from U.S. regulators.

Shares of T-Mobile US are 1.46% to $33.36.

Must Read: Warren Buffett's 25 Favorite Growth Stocks

 

Together, third-ranked Sprint, acquired by SoftBank last year, and T-Mobile have some 100 million U.S. subscribers, putting their combined customer base on par with those of Verizon Wireless (VZ) and AT&T (T), the Nikkei said.

The Japanese carrier plans to buy more than 50% of T-Mobile shares through Sprint from Deutsche Telekom, which owns a roughly 67% interest. SoftBank will pay cash and use stock swaps to cover the estimated purchase cost of more than 1.7 trillion yen, or $16 billion, the Nikkei added.

SFTBF ChartSFTBF data by YCharts

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

More from Markets

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Inside Carnival's Mind Blowing New Horizon Cruise Ship (Video)

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Jim Cramer: The 10-Year Yield Could Go to 2.75%

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Oil Slumps, Gas Spikes Ahead of Holiday Weekend; Assessing the Chipmakers--ICYMI

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Week Ahead: Wall Street Looks to Jobs Report as North Korea Meeting Less Certain

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%

Dow and S&P 500 Decline, Energy Shares Fall as U.S. Crude Oil Slides 4%