Sign up
Log in
SoftBank Moves To Raise $4.9 Billion With Overnight T-Mobile Block Sale— Stock Drops 4% After Hours As Investors Digest Discount
Share
Listen to the news

Japan’s SoftBank Group Corp. (OTC:SFTBY) is reportedly looking to raise $4.9 billion via a sizable overnight stake sale.

What Happened: On Tuesday, it was revealed that the Japanese investment holding company would be raising these funds via an unregistered overnight block sale of its stake in T Mobile US Inc. (NASDAQ:TMUS), according to a report by Bloomberg News, which saw the terms of the deal.

SoftBank is offering 21.5 million shares in the telecom giant at a price range of $224 to $228 per share, representing a 3% discount to T-Mobile’s closing price on Monday, at $230.99.

The deal, when completed, is set to be the largest U.S. equity block sale since Toronto-Dominion Bank's (NYSE:TD) $13.1 billion divestiture of its stake in Charles Schwab Corp. (NYSE:SCHW) in February. It also adds to the growing wave of equity offerings by new and existing shares, reaching $91.4 billion so far in 2025, up from $75.9 billion last year.

See Also: Dimon Called Crypto A ‘Ponzi Scheme’—Now JPMorgan Is Building JPMD To Trade It

As of March 31, 2025, SoftBank held 85.4 million T-Mobile shares, equivalent to a 7.52% stake, which was originally acquired as part of Sprint Corp.’s $26.5 billion merger with T-Mobile in 2020. SoftBank had acquired a majority stake in T-Mobile back in 2013.

Following the proposed transaction, SoftBank’s stake will shrink by 1.9 percentage points, leaving it with a roughly 5.6% stake in the company.

The transaction is being managed by Bank of America Corp. (NYSE:BAC), and neither SoftBank nor T-Mobile has immediately responded to Benzinga’s request for a comment.

Why It Matters: This move might prompt T-Mobile’s majority stakeholder, Deutsche Telekom AG (OTC:DTEGY), to vie for greater control of the company, something that it’s been pursuing for the past several years.

SoftBank continues to pursue investment opportunities in the U.S., having led a $40 billion investment round in OpenAI early this year.

The company’s CEO, Masayoshi Son, had earlier committed to investing $100 billion in the United States during a meeting with the then President-Elect Donald Trump at Mar-a-Lago late last year.

Price Action: T-Mobile shares were up 1.31% on Monday, ending the day at $230.99, but are down 3.89% after hours following news of the stake sale.

The company’s shares show strong Momentum, and rank well on Quality according to Benzinga’s Edge Stock Rankings, but only have a favorable price trend in the long term. See here for deeper insights into the stock, the company, its peers, and competitors.

Photo Courtesy: Koshiro K on Shutterstock.com

Read More:

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
What's Trending
No content on the Webull website shall be considered a recommendation or solicitation for the purchase or sale of securities, options or other investment products. All information and data on the website is for reference only and no historical data shall be considered as the basis for judging future trends.