Prepaid wireless carrier STS Media said it agreed to sell its FreedomPop brand to Red Pocket Mobile in order to place a bid on Sprint’s Boost Mobile. Sprint agreed to spin off Boost as it and T-Mobile work to get regulators to sign-off on their planned merger.
STS CEO Stephen Stokols said proceeds from the sale will be invested in technology and place STS in a better position to partner with other companies or private equity firms to pursue Boost.
A source familiar with the deal told Reuters, the transaction is valued in the “high eight figures.”
STS is reportedly speaking with several private equity groups and at least one “facilities-based buyer,” meaning a telecom that owns physical network infrastructure. FreedomPop doesn’t own spectrum nor towers; it uses the AT&T and Sprint networks, according to the account.
Amazon is also interested in acquiring Boost, mostly because the sale would include a six-year contract that allows access to the combined T-Mobile-Sprint network, Inside Towers reported. Other interested bidders include Boost Mobile’s original founder Peter Adderton, who has been on a public campaign to buy back Boost since the merger was announced, and prepaid wireless provider Q Link Wireless, noted Reuters.
June 11, 2019