Sunday, 16 June 2019

T-Mobile and Sprint line up buyers for $3bn Boost

By Chris Kelly, Total Telecom
Wednesday 29 May 19

The pair are still awaiting regulatory approval from the FCC and DoJ before their proposed merger can proceed

US network operators T-Mobile and Sprint have lined up a number of buyers for their pre-paid wireless subsidiary Boost, ahead of the companies' proposed merger. A report by journalists from Reuters suggested that potential buyers would be willing to pay up to $3 billion to acquire the pay…

US network operators T-Mobile and Sprint have lined up a number of buyers for their pre-paid wireless subsidiary Boost, ahead of the companies' proposed merger.

A report by journalists from Reuters suggested that potential buyers would be willing to pay up to $3 billion to acquire the pay-as-you-go service provider.

The proposed $26 billion merger between T-Mobile and Sprint will create the US' third biggest telco. The newly formed entity will have the scale and scope to mount a genuine challenge to the US' big two operators - AT&T and Verizon. However, both the Federal Communications Commission (FCC) and the Department of Justice, both of whom are required to give their regulatory approval before the deal can pass, have voiced concerns over a lack of competition were the merger to go through.

In an attempt to allay these concerns, the pair are exploring the possibility of selling off their pay-as-you-go subsidiaries, with Boost being among the most potentially lucrative.

Q Link Wireless' chief executive, Issa Asad told journalists from Reuters that his company was preparing a bid of between $1.8bn and $3bn to secure Boost, depending on the number of subscribers it retains.  

Also in the news:

T-Mobile and Sprint merger hits 11th hour stumbling block 

Sprint and T-Mobile plot last ditch asset sale

Verizon looks to offload Tumblr

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