Mint Mobile, the prepaid wireless brand in which Ryan Reynolds has a minority stake, was acquired by T-Mobile in a deal worth up to $1.35 billion.
Under the deal, which is expected to close later this year, T-Mobile will acquire Ka’ena Corp. and its subsidiaries and brands: Mint Mobile, international wireless service provider Ultra Mobile and wholesaler Plum. T-Mobile said it will be able to “leverage Mint’s industry-leading digital technology [direct-to-consumer] marketing expertise as part of its broader portfolio to reach new customer segments and geographies.”
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After the deal closes, Mint Mobile founders David Glickman and Rizwan Kassim will remain with T-Mobile to manage the brands, which will “generally” operate as a separate business unit. Reynolds will continue in his creative role as spokesperson for the Mint. The actor and businessman owns a roughly 25% stake in Mint, according to a report by Bloomberg, which previously reported on the company’s talks with T-Mobile.
“Mint Mobile is the best deal in mobile and today’s news only enhances our ability to serve our customers,” Reynolds said in a statement. “We are very pleased that T-Mobile beat out a last-minute aggressive offer from my mother, Tammy Reynolds, as we believe that the excellence of their 5G network will provide a better strategic mix than my slightly above-average mahjong skills. mother. I am very proud of the entire Mint team and very excited for what is to come.”
T-Mobile said it will keep Mint Mobile’s current pricing plans, which start at $15 per month for unlimited talk and text and up to 4GB of data per month.
T-Mobile will pay up to a maximum of $1.35 billion in a combination of 39% cash and 61% stock to acquire Ka’ena. The actual price T-Mobile will pay will be based on Ka’ena’s performance during certain periods before and after the shutdown and is also subject to working capital adjustments and other contractual reserves, the carrier said. T-Mobile said it currently does not expect the transaction to have any impact on the company’s 2023 financial guidance or its ongoing share repurchase program.
“Mint has built an incredibly successful direct-to-consumer digital business that continues to deliver to customers on Un-carrier’s leading 5G network and now we’re excited to use our scale and owner economics to help power it, and Ultra Mobile. into the future,” T-Mobile CEO Mike Sievert said in announcing the deal.
Taking to social media, Reynolds shared a video (produced by his production and advertising company Maximum Effort) featuring Sievert. “It’s good to have a new dad!” Reynolds exclaims at the end of the clip after hugging the T-Mobile CEO.
In 2020, Diageo PLC acquired Aviation Gin, in which Reynolds was a co-owner, for up to $610 million.
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