T-Mobile Purchases Ryan Reynolds-Owned Mint Mobile In High-Profile Acquisition
T-Mobile is planning to purchase Mint Mobile in a deal worth up to $1.35 billion.
T-Mobile is planning to purchase Mint Mobile in a deal worth up to $1.35 billion. The acquisition of the cell service provider’s parent company, Ka’ena Corporation, also includes Ultra Mobile, an international calling service, and wireless wholesaler Plum. Once the sale is finalized, co-owner Ryan Reynolds will continue appearing in commercials on behalf of the company.
The Marvel star holds a minority ownership stake in Mint Mobile which was deemed unconventional at the time because celebrities generally invest in high-end products. “I never dreamt I’d own a wireless company, and I certainly never dreamt I’d sell it to T-Mobile. Life is strange, and I’m incredibly proud and grateful,” the actor wrote on Twitter.
In a statement about the deal, Reynolds said the decision would benefit Mint Mobile subscribers. “We are so happy T-Mobile beat out an aggressive last-minute bid from my mom as we believe the excellence of their 5G network will provide a better strategic fit than [her] slightly above-average mahjong skills,” he joked in a statement.
According to NPR, the cash-and-stock deal is worth $1.35 billion. T-Mobile CEO Mike Sievert said the company would use its size and resources to give Mint Mobile a much-needed boost. He also believes the telecommunications company will benefit from using the marketing formula synonymous with Mint Mobile across other business areas.
Founders of Mint Mobile, David Glickman, and Rizwan Kassim, will continue to manage the brand within the T-Mobile deal as the company will operate as a separate entity. The $1.35 billion payment will be split into 39 percent cash and 61 percent stock. The final purchase price will be based on Ka’ena’s performance during critical financial periods before and after the deal closes.
The press release says the price tag is also subject to working capital changes and other contractual reserves. T-Mobile does not expect the acquisition to impact its 2023 guidance or ongoing stock repurchase program. In a YouTube video, CEO Mike Sievert assured customers that Mint Mobile’s $15 monthly pricing plan would remain unchanged.
Mint Mobile is a budget-friendly wireless provider with a very successful digital direct-to-consumer business that continues to deliver great value for customers on T-Mobile’s leading 5G network. By reaching new budget-conscious customers, the company can influence Mint’s industry-leading digital direct-to-consumer marketing expertise as part of its broader portfolio.
Ryan Reynolds is very familiar with managing big business deals. Away from T-Mobile, he sold Aviation Gin to Diageo in 2020. According to The Hollywood Reporter, the deal was worth $600 million. A year later, he purchased Wrexham United Football Club with It’s Always Sunny in Philadelphia co-creator Rob McElhenney in a deal worth $2.5 million.
The pair also created a documentary series to generate publicity for the team called Welcome to Wrexham. Reynolds is one of many actors investing in unconventional business ventures like the T-Mobile deal. Ashton Kutcher owns stakes in Uber, Skype, and Airbnb, while Snoop Dogg and Jared Leto are shareholders in Reddit.
T-Mobile’s stock prices have been performing well this year, with an increase of 22 percent. The company has repurchased some of its shares, with $3 billion reacquired in 2022. According to Investor’s Business Daily reports, Deutsche Telekom, the company’s controlling stockholder, holds a 48.4 percent stake and expects to increase that figure to over 50% in 2023.
Additionally, T-Mobile continues to expand its fixed broadband services to residential customers, targeting seven million to eight million fixed broadband customers by 2025.
