T-Mobile is expanding its reach to get people who want cheaper pre-paid smartphone plans by acquiring the parent company of Mint Mobile. The announcement today stated that T-Mobile will buy Ka’ena Corporation for $1.35 billion, using a combination of 39% cash and 61% stock.
Ka’ena Corporation is not only the parent company of Mint Mobile, but also another pre-paid service, Ultra Mobile, and the wholesaler Plum. Both Mint Mobile and Ultra Mobile were already using T-Mobile"s network.
In its press release, Mike Sievert, CEO of T-Mobile, stated that the company will "help supercharge" Mint Mobile and Ultra Mobile. He added.
Over the long-term, we’ll also benefit from applying the marketing formula Mint has become famous for across more parts of T-Mobile. We think customers are really going to win with a more competitive and expansive Mint and Ultra.
In 2019, actor Ryan Reynolds bought an ownership stake in Mint Mobile, and since then he"s been front and center in most of the company"s marketing and TV commercials. Today"s deal doesn"t mean Reynolds will take his share of the cash and run. He will continue as a creative executive with T-Mobile"s ownership. Reynolds also made a video with Sievert that contains Reynolds"s dry humor approach.
Pending approval from government regulators, the acquisition is expected to close sometime later in 2023.
Source: T-Mobile