FreedomPop owner STS Media is preparing to sell off the prepaid wireless FreedomPop brand, as the parent company readies its potential bid for Sprint’s Boost Mobile.
STS Media will sell FreedomPop to Red Pocket Mobile, according to a report from Reuters, and will reinvest proceeds from the sale into STS Media’s technology. The company hopes to partner with other companies or private equity groups to pursue Boost Mobile.
An unnamed source told Reuters the transaction values FreedomPop in the “high eight figures.”
RELATED: Sprint's Boost Mobile likely to be valued between $3B and $4B: Reuters
Sprint and T-Mobile recently won FCC approval for the proposed $26.5 billion merger, with the condition that Sprint must sell Boost Mobile. Sprint and T-Mobile are now awaiting approval from the Department of Justice before completing the merger.
STS Media CEO Stephen Stokols told Reuters last month he was advising a private equity group on a bid for Boost Mobile. Stokols said the unnamed firm may try to combine FreedomPop with Boost if successful, at the time.
More recently, STS Media said it was in conversation with several firms, including at least one company that owns wireless infrastructure, about partnering in a bid for Boost Mobile.
RELATED: Amazon is considering a bid for Boost Mobile
Other parties interested in acquiring Boost Mobile include the company’s original founder, Peter Adderton; prepaid wireless company Q Link, and Amazon.