Sprint, SoftBank Merger Deal: Sprint Cuts 'Nextel' Name as $21.6 Billion Investment Complete; Sprint Corp. Shares Up as SoftBank Credit Rating Drops

The third-largest U.S. mobile carrier is officially under the control of Japanese investment firm SoftBank.

Following the $21.6 billion acquisition of Sprint Nextel, Softbank completed the change on July 10.

As Latinos Post reported, the acquisition gives SoftBank a 78 percent stake in Sprint Nextel.

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The carrier also changed its official name as part of the new ownership, from Sprint Nextel to Sprint Corp. The changes won't affect its listing on the New York Stock Exchange (NYSE), which remains as "S."

SoftBank is Japan's third-largest carrier. The company outbid Dish Network Corp.'s 25.5 billion offer, but the latter eventually dropped its aspirations of purchasing Sprint Nextel.

SoftBank, however, may be facing backlash from its acquisition. According to Bloomberg, the Japan Credit Rating Agency reduced SoftBank's credit rating from A- to A on July 11, which came a week after Standard & Poor's cut their rating to BB+.

Following Wednesday's acquisition completion, Sprint's shared closed up 2.7 percent to $6.45 at the NYSE.

SoftBank's buyout of Sprint Nextel was made possible by the Federal Communications Commissions' (FCC) unanimous vote to approve the move.

"The increased investment in Sprint's and Clearwire's networks is likely to accelerate deployment of mobile broadband services and enhance competition in the mobile marketplace, promoting customer choice, innovation and lower prices," said FCC acting Chairwoman Mignon Clyburn, via Reuters.

"The FCC's thoughtful review and approval of these transactions represents an important step toward creating a more competitive U.S. wireless marketplace," said SoftBank Chairman and CEO Masayoshi Son. "SoftBank's investment in Sprint will bring innovation and increased customer focus, which will enable us to begin creating a true competitor in a market dominated by two companies. We look forward to leveraging the significant talent and resources of the New Sprint to bring innovation and better service to U.S. consumers."