FCC Gives Sprint Deals the Green Light

by Christopher Freeburn | July 3, 2013 9:18 am

FCC logo FCC Gives Sprint Deals the Green Light[1]Sources tell Bloomberg that two of the three members of the Federal Communications Commission (FCC) have voted to approve Softbank‘s acquisition of a majority stake[2] in Sprint (S[3]).

The Japanese telecommunications giant will pay $21.6 billion to acquire 78% of the third largest U.S. wireless carrier. Included in the FCC’s approval is clearance for Sprint’s subsequent purchase of the outstanding stake in wireless service provider¬†Clearwire (CLWR[4]).

Anti-trust regulators have already cleared the purchase. The deal also received approval from national security authorities after Softbank and Sprint agreed to restrict the use of network equipment manufactured by a Chinese company.

Softbank launched its bid for Sprint last year. However, satellite TV service Dish Network (DISH[5]) made a surprise bid for Sprint earlier this year[6], forcing Softbank to increase its offer for the wireless carrier.

Dish ultimately withdrew its offer.[7] Sprint shareholders voted in favor of the Softbank acquisition on June 25.

Shares of Sprint slipped slightly in pre-market trading on Wednesday morning.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2012/12/FCC-logo.jpg
  2. acquisition of a majority stake: http://www.bloomberg.com/news/2013-07-02/softbank-bid-for-sprint-said-to-win-majority-fcc-support.html
  3. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  4. CLWR: http://studio-5.financialcontent.com/investplace/quote?Symbol=CLWR
  5. DISH: http://studio-5.financialcontent.com/investplace/quote?Symbol=DISH
  6. made a surprise bid for Sprint earlier this year: http://investorplace.com/2013/04/sprint-shares-jump-on-25-5b-dish-network-takeover-bid/
  7. ultimately withdrew its offer.: http://investorplace.com/2013/06/its-over-dish-gives-up-on-its-bid-for-clearwire/

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