Sprint acquires Virgin Mobile for $483 million

Sprint acquires Virgin Mobile for $483 million

Sprint has just acquired Virgin Mobile USA for $483 million deal. This is an apparent step of Sprint Nextel to put a stronghold on its prepaid cell phone service market. The deal is expected to get approval by fall or in early next year.

In the deal, Sprint will be paying $5.50 in stock for each Virgin Mobile share. Virgin Mobile actually runs Sprint Nextel (which owns 13.1 percent of Virgin Mobile) network which serves to some 5.2 million subscribers. The acquisition cancels out Virgin’s $248 million in outstanding debts and merges the Sprint and Virgin services.

According to Sprint, it would keep the Virgin Mobile brand and let Dan Schulman Virgin Mobile USA’s CEO runs the entire Sprint’s prepaid business.

Therein, Virgin shareholder will grab 3 percent of Sprint, which belongs to Richard Branson’s Virgin Group (28.3 percent) and SK Telecom (15.3 percent from Virgin Mobile-Helio buy out).

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