STS Media Wants to Sell FreedomPop to Gain Boost Mobile

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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        

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