T-Mobile to acquire Ryan Reynolds' Mint Mobile for $1.35 billion

[DragonSlayer101]

Why it matters: Mint is a mobile virtual network operator (MVNO) offering its services over T-Mobile's network. The acquisition is Team Magenta's third big M&A deal in recent years, following the purchase of MetroPCS in 2013 and the merger with Sprint in 2018. While the sale ensures a massive payday for Mint Mobile shareholders, it could also help T-Mobile gain back some of the customers it lost after it sold Boost Mobile to Dish following the Sprint deal.

T-Mobile is buying budget wireless carrier Mint Mobile's parent Ka'ena Corporation in a deal that could be worth up to $1.35 billion in a combination of 39 percent cash and 61 percent stock. The deal also includes international calling service Ultra Mobile and wireless wholesaler Plum.

As part of the deal, T-Mobile is acquiring Mint, Ultra and Plum's sales, marketing, digital, and service operations. The self-proclaimed un-carrier also said that it expects the acquisition to help it gain a foothold in new customer segments and markets across the US.

Mint Mobile is part owned by actor Ryan Reynolds, best known for playing the titular character in 2016's Deadpool and 2018's Deadpool 2. Reynolds also appears in Mint Mobile ads, and T-Mobile says the brand's association with the actor will continue. According to the carrier, Reynolds will continue to appear in Mint Mobile's ads, and will stay on in his creative role at the company.

T-Mobile also published a video on YouTube, where Reynolds was seen joking with the company's CEO, Mike Sievert. In the clip, Sievert assured Mint customers that Team Magenta will continue with the company's $15 per month pricing, and promised to offer "more good stuff" in the future.

Reynolds said he was happy with the deal, and was looking forward to working with T-Mobile in the future. In a tweet, the actor said, "I never dreamt I'd own a wireless company and I certainly never dreamt I'd sell it to T-Mobile. Life is strange and I'm incredibly proud and grateful."

Despite T-Mobile already having low-cost prepaid services like Metro and Connect in its portfolio, the company believes the Mint acquisition will be complementary to its current offerings. T-Mo also said all acquired brands will continue to remain in operation following the takeover.

Sievert attempted to assure concerned users that the acquisition will not reduce competition in the low-cost prepaid market, but will instead be helpful for customers in the long run. According to him, "We think customers are really going to win with a more competitive and expansive Mint and Ultra."

Permalink to story.

https://www.techspot.com/news/97960-t-mobile-acquire-ryan-reynolds-mint-mobile-135.html

 

[ThrakazogZ]

T-Mobile promised that prices and coverage would stay the same, so it must be true............

 

[Hodor]

A billion here, a billion there, and soon we start talking about serious money...

 

[axiomatic13]

If you liked Mint as an MNVO. Google Fi operates the same way, on top of T-Mobile's network and I feel it is superior to Mint.

 

[MakeMSGreatAgain]

Yeah we'll see how long those prices last... Mint is essentially a contract service and requires 3, 6, or 12 month commitments and you only get the $15/mo on the 12 month contract. Not a huge deal and I have been enjoying the low cost service for a few years now, but Mint has stayed true thus far and if that changes after pinky's takeover I'm going to turn into an unhappy customer. Only glimmer of hope is TMobile has been one of the lowest cost carriers for some time, and if they have good coverage in your area then there is little reason not to go with them.

 

[BuckarooBonzaii]

$1.35 billion would set me free, an offer I can't refuse.

 

[sorten]

It's a private company, but most references I found state that he owns about 25%.

Reynolds seems to have a good eye for opportunities. He buys in, takes part in advertising, talks it up on social media and then profits when the company is purchased. He did the same with a liquor company a few years earlier.

 

[DukeJukem]

If you liked Mint as an MNVO. Google Fi operates the same way, on top of T-Mobile's network and I feel it is superior to Mint.

last I read they also use us cellular but that may have changed. if so I'd agree with you. having t mobile/sprint of top of us cellular would seem superior on paper. I thought mint used t mobile plus verizon but now im not seeing anything about verizon. regardless since t mobile acquired them they wouldnt be able to use verizon anymore. might be why I cant find info on mint using verizon even though I swear I read that they did less than a year ago. might have been prepping to sell to tmobile for a while now hence why I cant find the info.

 

[VitalyT]

This should warrant some Deadpool jokes

 

[axiomatic13]

last I read they also use us cellular but that may have changed. if so I'd agree with you. having t mobile/sprint of top of us cellular would seem superior on paper. I thought mint used t mobile plus verizon but now im not seeing anything about verizon. regardless since t mobile acquired them they wouldnt be able to use verizon anymore. might be why I cant find info on mint using verizon even though I swear I read that they did less than a year ago. might have been prepping to sell to tmobile for a while now hence why I cant find the info.

Yes, they do. Sorry, I should have mentioned that. I live in Texas so US Cellular does not operate down here. Fi also has all different types of contracts. The popular one is the smallest one that if you don't use all your data limit they give you that money back at the end of the month. So if you are a light phone user, it's the best deal period.

 

[Avro Arrow]

And thus, another industry proves that oligopoly is unavoidable as things are. People dumbly seem to think that as long as there's at least two choices in any given industry that they're safe.

Gary Larson has tried to warn us but too many of us are too stupid to understand.

Welcome to modern capitalism!