As Sprint and T-Mobile await approval for their merger from the U.S. Department of Justice, potential buyers of Sprint’s Boost Mobile prepaid business are readying their bids.
The $26.5 billion merger deal between Sprint and T-Mobile moved ahead last week when it was given the green light by the Federal Communications Commission. The FCC decided in favor of the merger after the two wireless companies promised a series of concessions, including selling off Sprint’s prepaid business.
Reuters reports that potential bidders are valuing the company between $3 billion and $4 billion. Prepaid wireless firm Q Link said it would pay between $1.8 billion and $3 billion for the Boost brand, according to the Reuters report, depending on details of the business such as churn rates and APRU. Sprint has not disclosed how many subscribers the brand has.
FreedomPop’s CEO Stephen Stokols told Reuters he is advising a private equity group on a bid that would value Boost Mobile at $4 billion. The unnamed firm may try to combine FreedomPop with Boost if successful, Stokols said.
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Meanwhile, Boost Mobile’s own founder, Peter Adderton, has said he’s interested in buying back the company. Reuters reports Adderton is urging regulators to force T-Mobile and Sprint to let go of some spectrum assets to help ensure Boost can operate as a competitive player in the market. Adderton also wants to ensure any network-sharing contracts between Boost and the new T-Mobile not be exclusive.