We may earn a commission for purchases made using our links.

It seems that SoftBank Group Corp is negotiating to sell a significant portion of its T-Mobile US shares to Deutsche Telekom AG. The Japanese conglomerate is looking for ways to raise funds after reporting an $18 billion loss at its giant Vision Fund, which makes its first negative results after fifteen years.

It seems that Softbank’s latest financial report has also been affected by the COVID-19 pandemic and some bad decisions that include the almost $10 billion investment at the office-sharing firm WeWork. Now Softbank aims to raise $41 billion by selling assets to boost its liquidity and help fund a big new stock-buy-back program. However, to achieve that goal, the Japanese conglomerate would have to sell a significant portion of its T-Mobile stake to Deutsche Telekom. If the operation is completed, it will leave Deutsche Telekom’s stake in T-Mobile from nearly 44 percent to above 50 percent.

T-Mobile’s market value stands at about $120 billion, after its recent merger with Sprint, which wouldn’t be affected by the possible operation. Softbank would also be expected to retain rights to 48.8 million shares to complete the merger, and these would be reissued if T-Mobile’s stock price reaches certain milestones within two years. Unfortunately, neither SoftBank or Deutsche Telekom have been immediately available for comment.

Source The Wall Street Journal

You May Also Like
Samsung Galaxy S20 Ultra
Time of Flight sensors may make their way back to Samsung phones very soon
It seems that we may get new Samsung Galaxy flagships with Time of Flight sensors faster than expected, as they could return next year
Pocketnow Daily: Google Pixel 5 Event Teased: It’s Packed! (video)
On today’s Pocketnow Daily, we talk about how the invitation for the next Google Pixel 5 event, the upcoming Apple event, and more.
LG WING
LG WING with Swivel display goes official
“The hinge mechanism in LG WING has proven to be perfectly reliable even after 200,000 swivels,” says the company.