T-Mobile and Sprint could sell Boost Mobile for up to $3bn
Potential buyers are reportedly lining up bids to snap up pre-paid phone company Boost Mobile from T-Mobile and Sprint for as much as $3bn (£2.4bn).
The planned sell-off comes a week after T-Mobile and Sprint won approval from the US federal communications commission for their $26bn merger.
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The two firms offered concessions to ease competition concerns, including reducing the combined company’s market share in the pre-paid mobile phone sector through the sale of Boost.
While the merger is still subject to approval from the US department of justice, potential buyers are already preparing offers for the California-based mobile company, Reuters reported.
Q Link Wireless, a major US pre-paid mobile firm, has secured private equity backing for a bid between $1.8bn and $3bn, founder and chief executive Issa Asad told Reuters.
The exact price will depend on the quality of Boost’s customers, based on factors such as churn level and what devices they are using, he added.
Stephen Stokols, chief executive of another rival Freedompop, said Boost could be valued at roughly $4bn, according to an unnamed private equity group he has been advising.
While Freedompop is not a bidder, Stokols said he believed the private equity firm would combine Boost with his firm if its bid is successful.
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As part of its efforts to secure approval for the merger, T-Mobile has pledged to roll out 5G for 97 per cent of the US population within three years.
T-Mobile and Sprint have been contacted for comment.