News
The deal has been pending regulatory approval since January last year
The Federal Communications Commission FCC confirmed last week that it has approved T-Mobile to purchase buy Ka’ena Corp, the owner of Mint Mobile, for up to $1.35 billion. The deal will also cover the acquisition of other companies under the Ka’ena Corp umbrella, including Ultra Mobile and wholesaler Plum.
According to a press release published last year after the deal was agreed, T-Mobile stated that it will pay up to $1.35 billion in a combination of 39% cash and 61% stock for Ka’ena Corp.
The company was founded in 2015 as a subsidiary of US-based mobile virtual network operator Ultra Mobile.
After moderate success, the popularity of Mint Mobile skyrocketed in 2019 following actor Ryan Reynolds acquiring a 20–25% stake of the firm and subsequently starring in all related advertising.
In January last year, it was reported that T-Mobile had entered to acquire Mint Mobile, with the purchase seemingly made simpler due to the fact that Ultra and Mint customers already receive services over T-Mobile’s 4G and 5G networks.
“I know they’re going to fit in because they are hyper-focused on offering customers compelling products at a great value,” said Mike Sievert, CEO of T-Mobile in an earnings call last week.
“We’ll work to further fuel their success while also learning from their team who are absolute rock stars in the direct-to-consumer and value segments,” he continued.
T-Mobile confirmed that after receiving regulatory approval, the deal is expected to close on May 1.
Keep up to date with all the latest telecoms news from around the world with Total Telecom’s daily newsletter
Also in the news:
South Korea to invest $7 billion in AI semiconductors
Swisscom expands 5G partnership with Ericsson
Daisy Group set to acquire 4Com for £215m
