The magenta giant has pledged to ‘supercharge’ the Mint Mobile brand while retaining the marketing bite of celebrity owner Ryan Reynolds
T-Mobile is set to purchase Ka’ena Corporation, the parent company of prepaid mobile virtual network operator Mint Mobile.
The Uncarrier will pay up to $1.35 billion for the company, with final amount varying based on Ka’ena’s performance during certain periods both before and after the deal closes. The sum will be paid in a combination of cash and shares.
The deal also includes the Ultra Mobile, a brand focussed on enabling cost-effective international calls, and the wireless wholesaler Plum.
“Mint has built an incredibly successful digital direct-to-consumer business that continues to deliver for customers on the Un-carrier’s leading 5G network and now we are excited to use our scale and owners’ economics to help supercharge it – and Ultra Mobile – into the future,” said Mike Sievert, CEO of T-Mobile. “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.”
Following the acquisition, T-Mobile says that Mint will continue to operate largely as an independent business, headed up by Mint co-founders David Glickman and Rizwan Kassim. T-Mobile also says it will retain the company’s $15 per month price point.
Mint Mobile was formally put up for sale back in 2021, at which time it was rumoured to be worth between $600 million and $800 million. Numerous companies were hinted at as potential suitors, perhaps most notably Altice USA.
However, reports that T-Mobile was interested in acquiring the company, only surfaced at the start of the year.
Mint has seen a meteoric rise to prominence in recent years, helped in no small part by the advertising prowess of movie star owner Ryan Reynolds, who took a 20–25% stake in Mint back in 2019 for an undisclosed sum.
Since then, he has starred in numerous adverts for the company, something that will presumably continue under the company’s new ownership.
“We are so happy T-Mobile beat out an aggressive last-minute bid from my mom Tammy Reynolds as we believe the excellence of their 5G network will provide a better strategic fit than my mom’s slightly-above-average mahjong skills,” said Reynolds in a statement.
The deal is expected to close later this year following the typical regulatory oversight.
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