Sprint Nextel to Buy Virgin Mobile USA in $483 Million Deal

Authored by Mark Hefflinger on July 28, 2009 - 7:46am.

Reston, Va. - Looking to boost its prepaid cell phone business, wireless carrier Sprint Nextel (NYSE: S) said on Tuesday that it will acquire Virgin Mobile USA in a deal valued at $483 million. When the deal closes later this year or in early 2010, Sprint plans to pair its Boost Mobile business with the Virgin Mobile brand, uniting two of the major players in the fast-growing market for prepaid wireless.

Sprint already owns a 13.1% stake in the company.

"Prepaid is growing at an unprecedented rate with consumers keenly focused on value," said Dan Hesse, the president and CEO of Sprint.

"Virgin Mobile is an iconic brand in the marketplace that will complement our Boost Mobile brand."

Dan Schulman, the CEO of Virgin Mobile USA, will lead Sprint's prepaid business, which plans to continue marketing both brands.

Matt Carter will continue to lead Boost Mobile and will report to Schulman.

Related Links:
http://snipurl.com/o5hs2

http://www.sprint.com

http://www.virginmobileusa.com

Published in DMW Daily, July 28, 2009

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Comments

Wow

Submitted by MyMixer (not verified) on July 29, 2009 - 6:25pm.

Jeeze, it seems like every carrier is buying each other. Not sure if this will trigger any "monopoly" sensors, but it's sure leading to giant consolidations.