T-Mobile scoops up owner of Ryan Reynolds-backed Mint Mobile for $1.35 bln | Reuters

T-Mobile US Inc (TMUS.O) announced Wednesday that it has agreed to purchase Ka’ena Corp, the owner of budget service provider Mint Mobile, for up to $1.35 billion. The purchase is part of the telecom operator’s strategy to maintain business growth in a competitive market.

Mint Mobile, which is backed by actor Ryan Reynolds, offers pay-as-you-go services to customers. This type of service is expected to see increased demand as more people shy away from costly monthly bills.

The move will provide T-Mobile with a much-needed boost, as the promotions from its rivals, Verizon and AT&T, have caused its churn rate to increase. The churn rate is the percentage of customers who stop using a service.

The purchase agreement consists of 39% cash and 61% stock. The final purchase price will be determined by Ka’ena’s performance over certain periods before and after the closing of the deal, which is expected to occur later this year.

T-Mobile’s purchase of Ka’ena Corp is seen as a positive move for the telecom operator, as it looks to remain competitive in a highly saturated market. With the acquisition of Mint Mobile, T-Mobile will be able to tap into a larger share of the pay-as-you-go customer base and gain a much-needed boost in a time of intense competition…….[read more]

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