RSSSprint to acquire Virgin Mobile USA for $483 million
By Tim Conneally | Published July 28, 2009, 10:42 AM
Sprint, the United States' third largest Tier 1 mobile carrier, will be acquiring mobile virtual network operator (MVNO) Virgin Mobile USA for an estimated total of $483 million.
Sprint already owned 13.1% of Virgin Mobile USA, and the MVNO was the first prepay-only business to lease Sprint's mobile network. After the deal closes, Virgin Mobile USA's CEO Dan Schulman will lead Sprint's prepaid business, which already includes Boost Mobile.
"Prepaid is growing at an unprecedented rate with consumers keenly focused on value," Sprint CEO Dan Hesse said in a statement today. "Virgin Mobile is an iconic brand in the marketplace that will complement our Boost Mobile brand."
The other main controlling parties in Virgin Mobile USA were Sir Richard Branson's Virgin Group, which had a 28.3% stake, and South Korea's SK Telecom which got a 15.3% stake in Virgin Mobile USA after Virgin took over its Helio brand last year. Both of these companies shares will be converted into common Sprint stock.
If you guys think this merger is bogus, wait until you hear some of the thing Virgin is currently doing with its customers, i.e ME! They currently are offering a plan that is only $10, however, its only available to you if you "qualify" and meet their terms (people who are on welfare or unemployed), which I think is BOGUS because, in a way, it discriminates against the working middle class who aren't making it along so easily in this economy as it is. I don't get it. I have been using Virgin's service for about a year and a half, and I have yet to see a discount. Apparently, all I have to do is quit my job in order for this company to offer me some sort of discount or show its customer appreciation. Hopefully, Sprint will make some changes to these plans and their offerings, and HOPEFULLY, Virgin will strive to regain its original image. Just my 2 cents.
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|Great. An even longer arm of service.
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|Uh, meant to say sefvice that sucks!
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|What in the world are they thinking? They had trouble after merging with the dying Nextel and now, they're taking on another business that's not doing so well and that's already using their network.
Are they trying business suicide?
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|Awesome. Sprint has a new stream of customers to alienate. Break out your razor blades.
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