Wednesday, 29 July 2009

Sprint Nextel set to acquire Virgin Mobile – USA

US MNO Sprint Nextel is set to acquire Virgin Mobile USA for a reported sum of USD 483,000,000. Sprint Nextel, which already owned a 13.1% percent stake in Virgin Mobile USA, will combine Virgin Mobile USA with its own prepaid business.

Sprint Nextel will appoint Dan Schulman, the Chief Executive of Virgin Mobile USA, to head up the new prepaid business, which is to include Boost Mobile. Although the businesses will be combined, a Sprint Nextel spokesperson confirmed that they will be kept as separate brands ‘each with a distinctive offer, style and appeal to different customer demographics’.

Dan Hesse, President and Chief Executive Officer of Sprint Nextel, announced the deal by saying: "Prepaid is growing at an unprecedented rate with customers keenly focused on value. Virgin Mobile is an iconic brand in the marketplace that will complement our Boost Mobile brand.”

The head of Boost Mobile, Matt Carter, will keep his current position, although the restructured business will see him reporting to Dan Schulman.