Red Pocket Mobile announced Friday that it acquired MVNO FreedomPop from STS Media for an undisclosed amount.
Unnamed sources told Reuters earlier this month that the deal for FreedomPop was valued in the “high eight figures.” A Red Pocket representative wasn't immediately available for comment.
According to the news outlet, STS Media planned the sale to focus on a bid for Boost Mobile, which Sprint and T-Mobile are divesting to secure regulatory approval of their $26.5 billion merger, according to Reuters.
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Founded in 2006, Red Pocket Mobile offers prepaid wireless service plans, and operates on all of the major wireless networks in the U.S. FreedomPop has significant retail deals, with handsets and services offered at more than 2,300 Best Buy and Target locations and an online presence, attracting “millions” to their plans, according to Red Pocket.
The company said the acquisition enables both FreedomPop and customers of its Unreal Mobile brand to pair almost any phone with the nationwide network of their choice, bringing increased coverage and expanded device options.
"Red Pocket can connect virtually any mobile phone in America," said Joshua Gordon, founder and CEO of Red Pocket Mobile, in a statement. "In combining with FreedomPop's disruptive legacy, we're creating the next generation of wireless service - one that is hyper-innovative and relentlessly customer-focused."
FreedomPop launched its new MVNO Unreal Mobile brand in May 2018, offering unlimited service starting at $15. The company openly admitted it leveraged the competitive environment afforded by the proposed Sprint-T-Mobile merger to launch the brand, which Sprint would not have gone for otherwise, FreedomPop executives told FierceWireless at the time.
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Red Pocket indicated that the recent acquisition won’t disrupt current service plans for FreedomPop and Unreal Mobile, but users can expect new offerings like native voice service, enhanced billing controls, and live customer service.
“Providing top coverage and customer service is a Red Pocket specialty,” said Kaisha Barela, director of customer experience at Red Pocket, in a statement. “We will deliver added transparency and service options to make FreedomPop not just ‘freemium,’ but premium!”