Ryan Reynolds’ Mint Mobile Acquired by T-Mobile for $1.35 Billion

T-Mobile buys actor Ryan Reynolds-owned low-cost wireless provider Mint Mobile for $1.35 billion ($2 billion) to bolster its prepaid phone business and reach more low-income consumers. You are trying to reach your customers.

The second-largest US wireless provider will acquire Ka’ena Corp., Mint’s private parent company, for a combination of 39% cash and 61% equity, according to a statement Wednesday. The final purchase price is based on Mint’s achievement of certain performance goals, both before and after the transaction is completed. Talks about the sale were first reported by Bloomberg News in January.

Reynolds, who owns an undisclosed but “substantial” stake in Mint, plans to continue making commercial appearances on behalf of the company, co-founder David Glickman said in an interview, noting that the actor has had “a lot of years.” continue,” he added. Glickman and his partner, Rizwan Kassim, will join his T-Mobile to manage businesses including his Ultra Mobile, an international calling service.

Mint offers some of the cheapest mobile plans in the country, starting at $15/month for 4 gigabytes of wireless data. The companies have not disclosed how many subscribers Mint has. Glickman said annual subscriber growth has been 50% over the past four years, and revenue growth he’s had over 70%.

The business has no stores and sells phone and mobile plans entirely online. This service is already offered by T-Mobile as part of a wholesale network sharing agreement.

Mike Katz, president of marketing at T-Mobile, said: Based in Bellevue, Washington, the company also operates its own prepaid brand called Metro.

The pay-as-you-go market is seen as a source of overall subscriber growth as customers with credit issues are eventually drawn into recurring monthly billing. Mint competes with other prepaid phone brands such as AT&T’s Cricket, Verizon’s Total and Dish Network’s Boost Mobile.

T-Mobile expects the transaction to close later this year and expects its 2023 financial outlook to remain unchanged. Mint “slightly increases” adjusted earnings before interest, taxes, depreciation and amortization.