T-Mobile, the second largest wireless carrier in the U announced on Wednesday it is buying prepaid wireless carrier Mint Mobile from parent company Ka’ena Corporation in a deal worth $US1.35 ($2) billion. The acquisition will also include Ka’ena subsidiaries Ultra Mobile (another prepaid wireless service) and wireless wholesaler Plum.
In a press release, T-Mobile CEO Mike Sievert said that “Mint has built an incredibly successful digital direct-to-consumer business that continues to deliver for customers… now we are excited to use our scale and owners’ economics to help supercharge it – and Ultra Mobile – into the future.”
Mint founders David Glickman and Rizwas Kassim will continue to work with the subsidiary by managing the brands under T-Mobile. Actor Ryan Reynolds became a partial owner of Mint Mobile in 2019 and holds roughly a 25% stake in the company. He will stay on as the company’s spokesperson.
“We are so happy T-Mobile beat out an aggressive last-minute bid from my mum, Tammy Reynolds, as we believe the excellence of their 5G network will provide a better strategic fit than my mum’s slightly above-average mahjong skills,” Reynolds said in a release. “I am so proud of the entire Mint team and so excited for what’s to come.”
Although the company reported the approximate payout amount $US1.35 ($2) billion, the final value of the deal is tied to Ka’ena’s performance before and after it closes, and consists of a combination of 39% in cash and 61% stock.
T-Mobile will reportedly keep Mint’s prices — currently $US15 ($21) per month for unlimited talk and text and up to four GB of data per month– the same following closure of the deal.
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