Japan's SoftBank said it would separate its domestic wireless business from its majority stake in Sprint and other overseas businesses.
Sprint Chairman Masayoshi Son plans to create a subsidiary of SoftBank that will accept some of the carrier's network gear and spectrum as collateral for billions in loans this year, as outlined in a new report from Bloomberg.
Sprint "is showing definitive signs of a turnaround," SoftBank Chairman Masayoshi Son said, according to Bloomberg. And its budget will continue to get leaner.
Sprint's struggles are beginning to take a toll on parent company SoftBank.
Sprint plans to cut thousands of more jobs as part of its effort to slash at least $2 billion in operating expenses from the business, according to Sprint Chairman and SoftBank CEO Masayoshi Son. Sprint CEO Marcelo Claure said he has been very direct with employees about the need to slash costs in a bid to get back to profitability, something Sprint hasn't really achieved in 11 years.
Sprint CEO Marcelo Claure and Chairman Masayoshi Son have spent the last month and a half proclaiming that they have faith in Sprint and its turnaround efforts, with SoftBank snapping up shares in a show of confidence. However, some in the investment community are not as sure, and Moody's Investors Service downgraded its credit ratings on Sprint, saying that the carrier is not doing enough to right itself.
LAS VEGAS-- Sprint CEO Marcelo Claure said that the carrier's recent improvement of its network in Denver-- and network testing firm RootMetrics' determination that it provided the fastest network there and virtually tied Verizon Wireless for overall network performance – is a sign of things to come as the carrier revamps its network.
While the other big U.S. nationwide wireless operators have lodged their opinions in the great LTE-Unlicensed (LTE-U)/Licensed Assisted Access (LAA) debate, Sprint has been quiet on the topic. Of course, it's got plenty of other things going on, but it's somewhat curious because the company plays in both the Wi-Fi and LTE camps.
Sprint parent SoftBank's recent purchases of the carrier's shares have boosted its stock price up around 50 percent since before starting the buying spree in August. The share purchases are a reflection of SoftBank's confidence and have added $6.7 billion to Sprint's market value since Aug. 7.
Sprint parent SoftBank bought around $87 million more shares in the carrier, a sign of confidence that SoftBank is standing behind Sprint as the company continues its turnaround push.