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Softbank’s Free $7.6B Worth of T-Mobile Stock Raises Eyebrows Softbank’s Free $7.6B Worth of T-Mobile Stock Raises Eyebrows

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Softbank Announces June 20 Commercial Launch Of Pepper Humanoid

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Well, well, well! Softbank (OTCPK:SFTBY) bucked the trend and scored big time on Wednesday. With its Tokyo-traded stocks soaring by 7%, itโ€™s no wonder theyโ€™re raking in the rewards. Whatโ€™s the secret sauce for their success, you ask? Theyโ€™re about to receive a whopping $7.59B worth of T-Mobile (NASDAQ:TMUS) shares at absolutely no extra cost. Talk about hitting the jackpot!

Lo and behold, SoftBank (OTCPK:SFTBY) made it known on Tuesday that theyโ€™ve given T-Mobile US (TMUS) the nod to issue approximately 48.75 million shares, with the value being based on the closing price on December 22. Thatโ€™s all part of the merger agreement when the wireless heavyweight, TMUS, tied the knot with rival Sprint back in 2020.

But wait, thereโ€™s more! If SoftBankโ€™s (OTCPK:SFTBY) stockโ€™s trailing 45-day VWAP hits $150 or more by the end of 2025, you can bet the farm theyโ€™ll cash in on T-Mobile (TMUS) shares. Itโ€™s a bit like rolling the dice in a high-stakes game of monopoly โ€“ except this time, everybody wins!

Feast your eyes on this โ€“ the successful listing of chip manufacturer Arm (ARM) back in September has loaded up SoftBankโ€™s (OTCPK:SFTBY) already impressive portfolio of listed assets. Itโ€™s a double whammy with this purchase, as their stake in T-Mobile US (TMUS) now jumps to 7.64% from the previous 3.75%. Itโ€™s like upgrading from a 2-bedroom apartment to a lavish penthouse suite!

With the T-Mobile US (TMUS) merger in the bag, SoftBankโ€™s (OTCPK:SFTBY) internal rate of return on its Sprint investment has sky-rocketed to a staggering 25.5%. Ka-ching! Now, thatโ€™s what you call a power move.

Even ratings agency Moodyโ€™s raised an eyebrow, all impressed, and lifted SoftBankโ€™s credit outlook back in November. They cited lower leverage and increased transparency, all thanks to the IPO of British chip designer Arm Holdings (ARM).

Oh, and hereโ€™s the cherry on top โ€“ chip designer Armโ€™s (ARM) share price hit a record high of $74 on Tuesday. One analyst raised the price target to $110, suggesting nearly 50% upside from the current share price. Itโ€™s like the stock market version of busting a move on the dance floor!

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