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Thread: Boost Suitors - Founder Peter Adderton, Q-Link & Tracfone

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    Boost Suitors - Founder Peter Adderton, Q-Link & Tracfone

    https://www.fiercewireless.com/wirel...st-acquisition

    Boost Mobile founder Peter Adderton isn’t the only one expressing interest in acquiring the prepaid business should the T-Mobile/Sprint merger get approved.

    The founder and CEO of Q Link Wireless, Issa Asad, said Boost would be a good fit with Q Link, which is Sprint’s largest MVNO customer and the third largest Lifeline operator behind Tracfone and Assurance Wireless.

    That revelation came as reports surfaced Friday that the deal might get the green light from the Department of Justice (DoJ) after all. Earlier last week, FCC Chairman Ajit Pai announced he would support the merger if certain conditions were met, including the buildout of 5G in rural areas of the country as well as the divestiture of the Boost business. Sprint’s prepaid brands include Boost, Virgin and Assurance.

    But shortly after that news, reports surfaced that the DoJ staff was once again voicing concerns about the market moving from four to three. On Friday, the New York Post reported that Pai had “consulted” with Makan Delrahim, the head of the antitrust division at the DoJ, suggesting Delrahim might be poised to overrule a recommendation from the DoJ’s staff to block the deal, according to unnamed sources.

    Adderton, who founded Boost and sold it before it eventually landed under Sprint’s domain, has made no secret of his desire to re-acquire the Boost brand and give it another go, with aspirations to make it a global entity.

    Asad started Q Link in 2011, and it now serves more than 2 million customers in 30 states. It’s unique in that its marketing is all online—it uses no agents—and 67% of its customers are in what Asad described as the less populated areas of America. His mission in starting the company was to go where its competitors were not—which meant the less populated areas.

    “We feel we’re the right fit,” with Boost and the systems and platforms that are compatible with Sprint, he told FierceWireless. “I think we could do something very good with it.”

    Asad said other than Adderton, the only other known entity that might be interested in Boost is Tracfone, but he doesn’t think that will transpire for reasons related to competition in the market. Asad said his company can compete with T-Mobile’s MetroPCS prepaid brand, which is Boost’s biggest competitor.

    If the merger doesn’t go through, Asad said he plans on continuing to grow his business. Q Link employs almost 400, and the company is debt-free, he said.

    Asad added if a sale does happen, he and his colleagues believe Boost could fetch $1.5 billion to $1.8 billion, and they have the financing lined up. It’s not known for certain how many subscribers would come with such an acquisition.

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    This is not good for Boost customers. A bidding war will drive up Boost's price, which will be passed on to its customers.
    Incidentally, Q Link is the company behind newish Sprint MVNO Hello Mobile.
    See my list of 2019 Black Friday prepaid and unlocked phone deals at https://prepaidcompare.net/bf2019.html

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    Quote Originally Posted by Yeswap View Post
    This is not good for Boost customers. A bidding war will drive up Boost's price, which will be passed on to its customers.
    Incidentally, Q Link is the company behind newish Sprint MVNO Hello Mobile.
    I would not count on many changes happening right away since they do not want to drive away subscribers. In addition to them buying Boost Mobile they will also have to transition their customers off of the legacy Sprint Network and move them to one of the three existing networks in the United States.

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    Unnamed potential bidder preparing financing for up to $4 billion bid.

    https://www.fiercewireless.com/regul...illion-reuters

    Consider that the merger, should it go through, will cost nothing since it's a stock only exchange, will save/make TSprint around $50 billion between synergies and new revenue opportunities - now throw in somewhere around $3-$4 billion in cash - wow what a bonanza.

    Adderton though has the right viewpoint though that the new company should not be solely tied to the merged entity through exclusivity.

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    Quote Originally Posted by offthegrid View Post
    ...Consider that the merger, should it go through, will cost nothing since it's a stock only exchange...
    Paying off or paying interest on Sprint's $35 billion debt is a lot of nothing.

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    Quote Originally Posted by Yeswap View Post
    Paying off or paying interest on Sprint's $35 billion debt is a lot of nothing.
    $35 billion for the 4th largest wireless carrier in the country with oodles of spectrum and $50 billion in synergies really makes it less than nothing but I get your point there are costs associated with it.

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    Amazon is interested in buying Boost Mobile and any spectrum that would be involved in the deal according to Reuters today.

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