The Federal Communications Commission (FCC) has approved T-Mobile"s acquisition of Ka"ena Corp, the owner of budget mobile service providers Mint Mobile and Ultra Mobile, for up to $1.35 billion.
The FCC"s approval is contingent on T-Mobile implementing a 60-day device unlocking policy for all Mint Mobile and Ultra Mobile devices activated on the T-Mobile network, both before and after the closing of the deal. This is expected to simplify the process for Mint Mobile and Ultra Mobile customers who wish to switch their service providers.
T-Mobile"s CEO, Mike Sievert, expressed excitement about welcoming Mint and Ultra Mobile to the family, during an earnings call on Thursday:
"I am so happy to report that we have received regulatory approval to acquire Mint and Ultra Mobile. We are really looking forward to welcoming them to the "uncarrier" family. And I know they are going to fit in because they are hyper-focused on offering customers compelling products at a great value."
With this acquisition, T-Mobile is set to expand its market share in the competitive telecom industry and gain access to a larger segment of the pay-as-you-go customer demographic. T-Mobile is also looking to benefit from Mint Mobile"s successful direct-to-customer business model and even its marketing expertise which often features the involvement of celebrity co-owner Ryan Reynolds, amidst intensifying competition from rivals like Verizon and AT&T.
The deal, which is valued at up to $1.35 billion will have the final purchase price to be determined by Ka"ena"s performance during certain periods before and after the closing of the transaction. The agreement consists of 39% cash and 61% stock.
Mint Mobile"s unique marketing tactics, such as the 2020 COVID-19 pandemic response where Ryan Reynolds left a voicemail for customers informing them of unlimited free data, have contributed to the brand"s growing popularity and appeal among consumers seeking more affordable mobile service options. Ryan Reynolds will continue to play a creative role for the brand.
After receiving regulatory approval from the FCC, T-Mobile anticipates closing the acquisition on May 1.
Via Reuters