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.
Go ahead and add AT&T, Comcast, Microsoft, Twitter, Verizon, Alibaba and News Corp. to the ever-growing "short list" of companies that might be interested in acquiring Yahoo's core Internet business.
The Japanese telecom and digital media giant SoftBank is considered a prime candidate as a buyer for Yahoo's core Internet business, according to a report in The Wall Street Journal. Any such deal would likely have a major impact on Sprint, the nation's fourth-largest wireless carrier, which SoftBank acquired in 2013.
Nikesh Arora, the former Google executive who is now president of SoftBank, said that he's not worried about the continued concerns over the future Sprint, of which SoftBank is the majority owner. "I'm very relaxed," Arora told Bloomberg. "I'm here for at least the next 10 years."
Sprint will get $1.1 billion in cash from a handset leasing company that has been set up by parent company SoftBank and other investors designed to put the financing of leased devices off of Sprint's balance sheet and provide it with more liquidity. Sprint plans to immediately turn to setting up a similar structure to finance the purchase of network equipment.
So far, little is known about how Sprint might structure a network lease deal that it has talked about doing, but one thing is sure: Sprint needs to cut costs, and structuring a network lease deal could go a long way in that endeavor.
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 is starting to slash costs as part of a broader effort to cut $2.5 billion in expenses. The carrier expects to provide more details on the looming layoffs associated with the cost-cutting as well as its network densification plans when it reports quarterly earnings tomorrow.
The move away from device subsidies and the longer lifespan of smartphones is creating a booming business for device distributor Brightstar Corp. The company, which was founded by Sprint CEO Marcelo Claure back in 1997 and received a $1.26 billion investment from SoftBank in 2014, originally made a name for itself handling reverse logistics and distribution for wireless dealers and some regional operators, but now is at the center of the used phone supply chain. The company claims to have 200 operator customers and 40,000 retail customers.