Virgin Mobile USA to be acquired by Sprint for $483 million

Virgin Mobile USA to be acquired by Sprint for $483 million
The number 3 wireless carrier in the U.S. grew its prepaid business a little bigger today. Sprint has agreed to purchase Virgin Mobile USA for $483 million which includes the former's 13.1% stake in the latter company. At closing, Sprint is expected to retire Virgin Mobile USA's debt which should be roughly $205 million by the end of this coming September. The deal is based all around the theory that there will be synergy by combining Sprint's prepaid Boost Mobile service with Virgin Mobile USA. In a press release explaining the deal, Sprint says that both Boost and Virgin have two different styles and should complement each other rather than have a competition.

Virgin Mobile USA CEO Dan Schulman will be named the head of Sprint's prepaid business and will report directly to Sprint CEO Dan Hesse. Matt Carter will remain as head of Boost Mobile, but will report to Schulman which means that Virgin will be slightly above Boost on Sprint's new depth chart. The deal is expected to close in the 4th quarter of this year or in early 2010.

source: Sprint

FEATURED VIDEO

10 Comments

1. Arielnyc2006 unregistered

This kinda makes sense, and it would be cool if Virgin would offer Sprint phones instead of the limited selection they offer now

3. dirty j harry

Posts: 6; Member since: Jul 28, 2009

YES WHAT A GOOD IDEA FOR A COMPANY THAT IS LOSEING MILLIONS!!!! EVERY QUARTER TO BUY A COMPANY IN SUCH DEBT WAY TO GO SPRINT!!! IT LOOKS LIKE BANK RUPT IS COMMING SOONER

6. craggie4ever

Posts: 27; Member since: Apr 24, 2009

Oh hush you know you love sprint! XD

7. dirty j harry

Posts: 6; Member since: Jul 28, 2009

WHAT HAVE YOU BEEN SMOKING COME DOWN YOUR HIGH AND EXCERPT THE TRUTH!!!

10. craggie4ever

Posts: 27; Member since: Apr 24, 2009

Am I spotting some denial??? I think I am! :DDDD

2. nzilliox

Posts: 2; Member since: Jul 28, 2009

I hope they increase the coverage area and some new phones would be nice as well.

8. prostatus

Posts: 5; Member since: Jul 29, 2009

I agree that some new phones would be nice, and I wonder if that means Sprint acquired Helio too because Virgin Mobile owns Helio. Both VMUSA and Helio operate using Sprint's PCS network... soooo IDK.

4. MrMojo

Posts: 20; Member since: Jul 10, 2009

Too bad Sprint still uses CDMA technology instead of GSM (SIM cards). Most every other country outside the USA uses GSM as it's so convenient using SIM cards in phones! What's the point of staying with a company that locks you in their phones in a proprietary phone technology that no one really uses??!

9. prostatus

Posts: 5; Member since: Jul 29, 2009

SIM cards are convienient but if your phone gets stolen, someone can just easily put their SIM in your device and is good to go. A CDMA ESN can be locked from use if its lost or stolen. In my opinion, CDMA is far more reliable and powers a much stronger (not to mention faster download speed and more coverage regardless of what some GSM stateside companies claim) 3G network. It also costs more to make a CDMA device, which in my experience , my CDMA phones have outlasted my GSM phones over 2-3x as long.

5. B_Adams

Posts: 24; Member since: May 25, 2009

Doesn't Virgin Mobile Use Sprint Towers Anyway?-I'm Not Sure; But I Think I Seen That.

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at https://www.parsintl.com/phonearena or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit https://www.parsintl.com/ for samples and additional information.