SoftBank to sell $4.9b T-Mobile shares at lower price

SoftBank Group aims to raise up to US$4.9 billion through a block sale of T-Mobile US shares.

The Japanese conglomerate is offering 21.5 million shares at a price range of US$224 to US$228 each.

This represents a discount of up to 3% from T-Mobile’s closing price of US$230.99 on June 16.,,s

T-Mobile’s stock price fell 2.9% to US$224.24 during after-hours trading on June 16. However, the stock has risen 4.7% since the start of the year.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ SoftBank’s pattern of investment cycling shows disciplined portfolio management

This sale follows a consistent pattern in SoftBank’s investment strategy of acquiring, transforming, and then monetizing assets at opportune moments.

SoftBank originally entered the U.S. telecom market through Sprint, which later merged with T-Mobile in a $26 billion deal that allowed SoftBank to address Sprint’s financial struggles while maintaining a stake in the combined entity 1.

The current share sale represents just 1.9% of T-Mobile’s outstanding shares, suggesting a measured approach to monetization rather than a complete exit 2.

This aligns with SoftBank’s broader portfolio management approach under Masayoshi Son, who reported a significant profit of 1.15 trillion yen for the fiscal year ending March, recovering from previous losses 2.

The timing is notable as T-Mobile shares have climbed 4.7% year-to-date, allowing SoftBank to capitalize on relative strength while potentially freeing capital for its continued focus on high-growth technology investments.

2️⃣ T-Mobile’s market position has dramatically evolved since the Sprint merger

The current share sale highlights how far T-Mobile has come from its challenging past, when it was losing subscribers and revenue before John Legere became CEO in 2012 3.

Once the distant fourth-place carrier behind AT&T, Verizon, and Sprint, T-Mobile surpassed Sprint to become the third-largest wireless carrier by August 2015, and the Sprint merger further solidified its competitive position 3.

The $26 billion T-Mobile-Sprint merger in 2018 came after multiple failed attempts at consolidation, including a rejected $39 billion acquisition by AT&T in 2011 and abandoned merger talks with Sprint in 2014 3.