Overview
- Sprint announced today (Tuesday, July 28) that it plans to acquire Virgin Mobile USA to further strengthen its position in the prepaid segment.
- Following the proposed acquisition, Sprint’s prepaid business will include the iconic Virgin Mobile USA brand along with its successful Boost Mobile brand. These brands have complementary distribution and demographics and are positioned to co-exist — each will aggressively attract and retain consumers seeking great service for great value.
What’s Next?
- The proposed transaction will go through the normal shareholder and government approvals process. Sprint expects the transaction to close in the fourth quarter of 2009 or early 2010.
- During this time, each business will operate as usual and each business will operate independently until the transaction is completed.
- Customers will not experience any change, regardless of whether they are Boost, Virgin Mobile USA, or Sprint postpaid customers.
Strategy
- The acquisition of Virgin Mobile USA is a growth opportunity for Sprint due to the popularity of prepaid plans, and the transition of some customers from postpaid to prepaid.
- The prepaid business has been a key segment in the wireless market for Sprint since the introduction of Boost Mobile. Customers today are seeking the best value for great service and for many individuals prepaid plans are a great choice. Sprint wants to provide its existing and new customers with greater flexibility that meets their wireless needs and economic requirements.
- Postpaid will remain a key business segment for Sprint.
