T-Mobile announces deal to acquire Mint Mobile, Ultra Mobile and Plum to expand its prepaid services
Today, T-Mobile has officially announced via a blog post that it has entered in an agreement to acquire Ka’ena Corporation, the parent company for Mint Mobile, Ultra Mobile, and Plum. The acquisition is to take place later in the year and will allow Mint to retain its current marketing strategy, as well as its most popular $15 USD plan.
The announcement was also highlighted in the form of a YouTube video starring T-Mobile CEO Mike Sievert along with Mint Mobile part owner, full-time business mogul, and part-time actor Ryan Reynolds. Of course, keeping with what has become Mint Mobile's marketing strategy, the video covered the most important points regarding the acquisition while also keeping it light and humorous.
The details of the agreement state that the companies in question will continue to have access to T-Mobile's network (including 5G) as the MVNO has been doing so for years now. However, by acquiring their sales, marketing, digital, and support operations, T-Mobile hopes to leverage its supplier connections and delivery scale to help the companies expand their products to more price-conscious customers in the United States.
As part of its wider portfolio, T-Mobile will also be able to use Mint's top digital direct-to-consumer marketing skills to expand into new consumer segments and geographies, These marketing strategies have proven to be quite effective so far while handled by Maximum Effort, a marketing firm co-owned by Ryan Reynolds himself and responsible for the campaigns behind the Deadpool movie franchise, Aviation Gin, Match.com and others. Mike Sievert, CEO of T-Mobile stated:
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.
T-existing Mobile's prepaid offerings—Metro by T-Mobile, T-Mobile branded prepaid, and Connect by T-Mobile—are complemented by the Mint and Ultra names. Additionally, once the transaction is finalized, Mint co-founders David Glickman and Rizwan Kassim will stay on at T-Mobile to continue leading the businesses. Mint's co-owner, Ryan Reynolds, will keep up his position as the company's chief creative officer.
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. #MintMobile— Ryan Reynolds (@VancityReynolds) March 15, 2023
To purchase Ka'ena, T-Mobile will pay up to $1.35 billion, split between cash payments (39%) and shares (61%) and contingent upon the company's financial results. The deal is anticipated to complete later this year, pending the fulfillment of customary closing conditions.
As far as what changes Mint Mobile subscribers can expect, we don't know much at this point other than the promise to keep the current $15 per month pricing plan which include limitless call and text as well as up to 4 GB of data per month.
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