Sprint to Acquire Virgin Mobile USA
Jul 28, 2009, 7:56 AM by Eric M. Zeman
updated Jul 28, 2009, 8:06 AM
Today Sprint Nextel announced that it has agreed to acquire Virgin Mobile USA. Virgin Mobile is an MVNO that uses Sprint's network to provide cellular services. Virgin acquired Helio, another MVNO that used Sprint's network, in 2008. Sprint will pay about $483 million to assume control of Virgin and its 5.2 million customers. Sprint already has a 13.1% stake in the company. Sprint says that Virgin Mobile will be maintained as a separate brand and offered along side its Boost Mobile pre-paid service. The CEO of Virgin Mobile USA will continue to run the Virgin Mobile division, and will report directly to Sprint CEO Dan Hesse. Sprint believes the acquisition will strengthen its pre-paid offerings, reduce operational costs for the two combined companies, increase cash flow, and bolster Sprint's management. The deal is expected to close in late 2009 or early 2010.
Comments
Cool, but may be a bit confusing...
What's cool is that Sprint will up their subscriber list.
They will not start integrating until they have re-done everything plus the document says it will keep them as a separ...
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Sprint should consolidate its brands.
But whatever works for them, I guess. I am just surprised that they are doing this given how they have been struggling. But hey, for 483 million its a cheap buy.
Its smarter for them to have their customer think they have a variety, when in actuality its still Sprint. media can ruin a lot for you. Sprints name has been ruined and the...
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Now they need to up th ante...
Sprint always seem to have a way
Thats good to see things like this happening. This should be good for sprint stock and shareholders 😎