T-Mobile US to buy Mint Mobile
To increase its customer base and marketing activities, T-Mobile US signed a legally binding agreement to buy Ka’ena and its affiliates, including prepaid brand Mint Mobile, international phone provider Ultra Mobile, and MVNA Plum, for up to $1.4 billion.
Furthermore, 39% of the acquisition price will be paid in cash, and 61% will be made in shares by the operator. According to the statement, the ultimate price will depend on Ka’ena’s performance in specific time frames before and after the acquisition closes, which T-Mobile anticipates will happen later this year, barring unforeseen circumstances.
According to Bloomberg, the MVNO has been up for sale for some time, with information that a deal for Mint Mobile earlier this year was stopped.
“Extremely successful”
David Glickman and Rizwan Kassim, the founders of Mint Mobile, will join T-Mobile to oversee the brands, which should operate as a “separate business unit.”
Ryan Reynolds, an owner in part, will keep promoting Mint Mobile.
Via an MVNO deal, Mint Mobile makes use of the T-Mobile network, and in 2022, MVNA Plum will increase its wholesale relationship with the carrier. Also connected to the carrier’s 5G network is Ultra Mobile.
Among other things, the agreement includes the sales, marketing, digital, and service assets of the MVNO, in addition to bringing Mint Mobile members under its roof.
The “extremely successful” digital direct-to-consumer business operated by Mint Mobile, according to T-Mobile CEO Michael Sievert, is a major appeal, and the MVNO and Ultra Mobile will profit from its “size and owner’s economics” as a result.
The operator hopes to gain from Mint Mobile’s direct-to-consumer marketing capabilities, and the purchase will allow all Ka’ena enterprises to provide consumers looking for low-cost tariffs with competitive pricing and a larger device selection.
T-Mobile sees prepaid services as a way to increase its total user numbers and perhaps convert more to contracts, despite the fact that it led the charts for post-paid net customer gains in Q4 2022.
Mint Mobile and Ultra Mobile, according to the operator, are complementary to its other prepaid brands.
Via: Mobile World Live (opens in new tab)
To increase its customer base and marketing activities, T-Mobile US signed a legally binding agreement to buy Ka’ena and its affiliates, including prepaid brand Mint Mobile, international phone provider Ultra Mobile, and MVNA Plum, for up to $1.4 billion. Furthermore, 39% of the acquisition price will be paid in cash,…
