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SoftBank Will Allow U.S. to Name Sprint Board Member

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May 23, 2013, 7:30 AM by Eric M. Zeman

SoftBank has signalled to the U.S. government that it will let officials elect a new person to Sprint's board of directors. This person would be responsible for overseeing national security concerns. The move is an unusual concession on SoftBank's part, and is being taken to allay U.S. governmental fears about foreign country ownership of a telecommunications company. The government is also pursuing the right to approve certain telecommunications equipment purchases, and wants Sprint to remove Chinese equipment from its affiliates. The U.S. Securities and Exchange Commission has already approved the deal, but it is still undergoing review within the U.S. Departments of Justice, Defense, and Homeland Security, in addition to the FBI. The deal must also be cleared by the Committee on Foreign Investment in the U.S.

Wall Street Journal »

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