SoftBank in $1bn talks for stake in Brightstar

SOFTBANK is in talks to buy a stake in US wireless device distributor Brightstar Corporation in a deal that media reported could be worth $1bnplus and would boost its bargaining power with hardware suppliers.

The company’s billionaire founder, Masayoshi Son, has said that one of the key benefits of an earlier purchase of US mobile carrier Sprint Corporation would be to bolster the group’s position with handset makers, an industry dominated globally by Samsung and Apple.

The Nikkei business daily said the Japanese technical and telecommunications group was in the final stages of talks to buy a stake of up to 70% in Brightstar in a transaction worth more than ¥100bn ($1bn).

SoftBank said: “We are in discussions on this matter but at this time we have not made any decision.” The talks mark a renewed acquisition drive by SoftBank after the $21.6bn Sprint purchase completed in July.

SoftBank, Japan’s third-largest company by market capitalisation, said on Tuesday it would pay ¥150bn for a 51% stake in Finnish mobile game maker Supercell, whose hit games include Clash of Clans and Hay Day.

“The volume effects and bargaining effects should begin to emerge in handsets in about six months to a year,” Mr Son said last month, referring to the Sprint acquisition.

“Our negotiating power has got a major boost.”

Brightstar’s website says it purchases handsets from more than 100 manufacturers including Samsung, Apple, LG Electronics and Sony, supplying carriers in markets worldwide.

SoftBank shares rose 2.2% to ¥7,400 yesterday, their highest close in a week, compared with a 0.2% rise in the benchmark Nikkei average. SoftBank has gained 136% since the start of the year.