SoftBank Is Selling American Telecommunications Company Brightstar
Japanese Corporation SoftBank Group announced today, September 18, the sale of American mobile distributor and wireless operator Brightstar. The buyer will be a subsidiary of the Fund Brightstar Capital Partners, created by a former top Manager of Brightstar. The amount of the transaction is unknown. The only thing is clear that in addition to cash, SoftBank will receive a 25 percent stake in this subsidiary.
Thus, SoftBank, which started as a telecommunications company and is now known more as a technology investor, sold another telecommunications asset. Brightstar was bought by a Japanese Corporation in 2014 when it paid $1.7 billion for the company. Brightstar has remained unprofitable in recent years, with a loss of $771 million in 2017 and 2018.
Recently, SoftBank has been actively selling its assets in General-this is due to significant losses of the company: its losses at the end of last year were the largest in its history, amounting to $13.2 billion. SoftBank's recent losses are related to the losses of some companies in which it invested through the Vision Fund, as well as problems with the WeWork coworking service. SoftBank has already cut stakes in T-Mobile US, Alibaba Group Holding, and its Japanese mobile division, and sold British processor maker Arm Holdings to us company Nvidia for $40 billion.
SoftBank Group Corp. (“SBG”) today announced that, on September 17, 2020 (U.S. time), it has entered into a definitive agreement with Brightstar Capital Partners (together with its affiliates, “BCP”), a U.S.-based private equity firm focused on partnering with founders, entrepreneurs and management teams, whereby SBG will sell all of its shares in Brightstar Global Group Inc. (“BGG”), a wholly owned subsidiary of SBG and the sole parent company of Brightstar Corp.
(“Brightstar”), a global leader of end-to-end device lifecycle solutions for carriers, retailers, and enterprises, to a newly formed subsidiary of BCP (the “Transaction”), for a consideration
consisting of cash proceeds and a 25% stake in a newly formed subsidiary of BCP, which will
hold all of BGG shares.