T-Mobile announced on Wednesday that it would acquire Ryan Reynolds-backed low-cost mobile virtual network provider Mint Mobile in a deal worth up to $1.35 billion.
The company said in a statement that it has entered into an agreement to acquire Ka’ena Corporation, the parent company of Mint Mobile, Ultra Mobile and also wireless program wholesaler Plum for a maximum of $1.35 billion. Ka’ena’s performance during specific periods before and after the closing of the deal will determine the final price, which will be paid 39% in cash and 61% in stock, T-Mobile said. The deal is expected to be finalized later this year.
Mike Sievert, President and Chief Executive Officer of T-Mobile, said: “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. 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.“
Ryan Reynolds, who partially owns Mint Mobile, commented: “Mint Mobile is the best deal in wireless and today’s news only enhances our ability to deliver for our customers. 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. I am so proud of the entire Mint team and so excited for what’s to come.’’
Following the acquisition, Ryan Reynolds will maintain his creative role on behalf of Mint, and David Glickman and Rizwan Kassim, founders of Mint, will stay onboard at T-Mobile to oversee the brands, which will generally operate as a separate business unit, the companies said.
Meanwhile, T-Mobile President Sievert announced in a YouTube video that they will continue Mint’s $15 monthly pricing.