SoftBank Group Corp. has quietly acquired a nearly 5% stake in Charter Communications Inc. in a transaction led by CEO Masayoshi Son, London's The Times reported, citing sources.
The move could possibly increase the possibility of a $100 billion merger between Charter and SoftBank-owned Sprint Corp., the report said.
Charter in mid-2017 rejected SoftBank's offer to merge with Sprint, a transaction that would have created a new publicly traded company that will be controlled by SoftBank. Charter shareholder John Malone, who owns about 21% of the company via Liberty Broadband Corp. Inc., reportedly agreed with the Charter board's decision to reject SoftBank's proposal.
The Japanese company also tried to buy Charter for $540 a share in cash and stock and has secured as much as $65 billion from four banks, in preparation for the company's possible formal takeover offer.
Altice NV and its U.S. cable subsidiary Altice USA Inc. also reportedly considered to acquire Charter in mid-2017.
The Japanese company again expressed its intention to resume deal talks with the U.S. cable company late in 2017 after merger negotiations between Deutsche Telekom AG-owned T-Mobile US Inc. and Sprint failed. The T-Mobile-Sprint deal would have brought together the third- and fourth-leading wireless companies in the U.S. behind Verizon Communications Inc. and AT&T Inc. in total subscribers.
