T-Mobile US Inc (NASDAQ:TMUS) announced it has entered into a definitive agreement to acquire Ka’ena Corporation and its subsidiaries, which include Ryan Reynolds-backed direct-to-consumer prepaid wireless brand Mint Mobile for up to $1.35 billion.
T-Mobile will also acquire Ultra Mobile, a wireless service that offers international calling options, and wholesaler Plum, the telecoms giant said in a statement.
The company said it will tap into Mint’s “best-in-class” digital direct-to-consumer marketing capabilities to reach new customers and create more competition in wireless.
Mint's founders David Glickman and Rizwan Kassim will remain onboard at T-Mobile to manage the brands, which will generally operate as a separate business unit, T-Mobile said. Partial owner of Mint and actor Reynolds will also continue on in his creative role on behalf of Mint.
I only want the best for Mint Mobile customers. Think I’ve found it. pic.twitter.com/nSNmGKLmN2
— Ryan Reynolds (@VancityReynolds) March 15, 2023
“Mint has built an incredibly successful digital direct-to-consumer business that continues to deliver for customers on the Un-carrier’s leading 5G network and now we are excited to use our scale and owners' economics to help supercharge it, and Ultra Mobile, into the future," commented T-Mobile CEO Mike Sievert.
"Over the long-term, we’ll also benefit from applying the marketing formula Mint has become famous for across more parts of T-Mobile.”
Reynold added that Mint Mobile was the best deal in wireless and today’s news only enhanced its ability to deliver for its customers.
“We are so happy T-Mobile beat out an aggressive last-minute bid from my mom Tammy Reynolds as we believe the excellence of their 5G network will provide a better strategic fit than my mom’s slightly above-average mahjong skills,” Reynolds joked.
“I am so proud of the entire Mint team and so excited for what’s to come.”
T-Mobile will pay up to a maximum of $1.35 billion in a combination of 39% cash and 61% stock to acquire Ka’ena. The actual price will be based on Ka’ena’s performance during certain periods before and after the closing, T-Mobile said.
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