SoftBank’s market value has dropped almost $24 billion this year, driven by concerns regarding Sprint Corp. Though SoftBank’s July purchase of Overland Park, Kan.-based Sprint has caused some investor anxiety, SoftBank founder Masayoshi Son appears ready to double down on U.S. telecom holdings by purchasing T-Mobile US Inc.
Concerns have arisen over the $20 billion in debt SoftBank took on while fighting for control of Sprint. And the regulatory barriers that could arise as Son tries to bring the third- and fourth-largest U.S. carriers under one roof could also be substantial.
Sprint’s trouble rolling out LTE and steady loss of subscribers is compounding investors’ worries. The purchase of T-Mobile would increase the strain on Softbank’s credit rating, which was cut to junk following the Sprint purchase. Son has looked into financing of about $20 billion for a T-Mobile bid.