U.S. wireless carrier Sprint Nextel has reportedly reached an agreement to sell 70 percent of itself to Japanese mobile carrier Softbank for $20 billion.
Both companies' boards have approved the deal, which is expected to be announced tomorrow, sources tell CNBC. Under the deal, Softbank will buy $8 billion in stock directly from Sprint, with another $12 billion purchased from existing stockholders.
The tender offer's price per share is reportedly $7.30, a 27 percent premium over the carrier's closing stock price Friday of $5.73.
CNET has contacted Sprint for comment and will update this report when we lean more.
Sprint had previously confirmed that it was in discussions with Softbank regarding a "" by the Japanese mobile carrier.
The investment is expected to be a big boost for Sprint, which continues to be mired in red ink. In the second quarter, the company posted a net loss of $1.37 billion, and the financial troubles are expected to present in the third quarter as well.
The increased size achieved by the combined operations could also be a big win for consumers, presumably leading to a better selection of phones, more competitive price plans, and ultimately, better service. In total, it could mean a stronger rival for fellow national carriers Verizon Wireless, AT&T, and T-Mobile USA.
The majority acquisition would be the second major transaction in the mobile industry lately. Earlier this month, Deutsche Telekom announced plans toand merge it with T-Mobile. Soon after that deal was announced, reports surfaced saying that to head off a merger with T-Mobile.
Softbank has nearly 30.5 million subscribers across Japan, making it one of that country's largest carriers. The Japanese mobile carrier currently has more than 177 billion yen (about $2.3 billion) in capital, according to the company's corporate data page.