SoftBank Group Corp. proposed to Charter Communications Inc. that it would be combined with Sprint Corp. which SoftBank controls, but was later rejected. Now, chairman of SoftBank, Masayoshi Son plans to acquire Charter by making an offer this week. Charter has a market value of $101 billion while SoftBank has $89 billion with shares falling 2.3% in Tokyo. SoftBank also has a debt of $135 billion but Son intends to build the world’s most valuable company by already raising $93 billion for tech investments.
By combining U.S. cable and wireless carriers such as Charter and Sprint, it could offer a full range of telecommunications services to customers and compete with packages sold by competitors such as AT&T Inc. and Verizon Communications Inc. Since May, Charter and Comcast Corp. have been speaking with Sprint about possible deals but ended this week when Charter decided to not move ahead with this deal with Sprint. Charter does not want to sell, but SoftBank is of one of the few companies that could put a bid that would be big enough to take control.
Combining Sprint and Charter would make it the fourth largest U.S. wireless carrier with the Number 2 U.S. cable company. Sprint’s market value is almost $33 billion and combining with Charter will total to $2 billion each year.