The deal has been pending regulatory approval since January last year: The Federal Communications Commission FCC confirmed last week that it has approved T-Mobile to purchase buy Ka’ena Corp, the owner of Mint Mobile, for up to $1.35 billion. The deal will also cover the acquisition of other companies under the Ka’ena Corp umbrella, including Ultra Mobile and wholesaler Plum.
According to a press release published last year after the deal was agreed, T-Mobile stated that it will pay up to $1.35 billion in a combination of 39% cash and 61% stock for Ka’ena Corp.
The company was founded in 2015 as a subsidiary of US-based mobile virtual network operator Ultra Mobile.
After moderate success, the popularity of Mint Mobile skyrocketed in 2019 following actor Ryan Reynolds acquiring a 20–25% stake of the firm and subsequently starring in all related advertising.
In January last year, it was reported that T-Mobile had entered to acquire Mint Mobile, with the purchase seemingly made simpler due to the fact that Ultra and Mint customers already receive services over T-Mobile’s 4G and 5G networks.
“I know they’re going to fit in because they are hyper-focused on offering customers compelling products at a great value,” said Mike Sievert, CEO of T-Mobile in an earnings call last week.
“We’ll work to further fuel their success while also learning from their team who are absolute rock stars in the direct-to-consumer and value segments,” he continued. T-Mobile confirmed that after receiving regulatory approval, the deal is expected to close on May 1. FCC gives T-Mobile the green light to buy Mint Mobile
