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T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval

 |  April 26, 2024

The US Federal Communications Commission (FCC) announced its approval on Thursday of T-Mobile’s acquisition of Ka’ena Corporation, the parent company of prominent prepaid wireless brands Mint Mobile and Ultra Mobile. According to Reuters, the deal, valued at potentially up to $1.35 billion, is poised to significantly enhance T-Mobile’s operational capabilities and customer offerings.

The acquisition is primed to grant T-Mobile more direct control over Mint Mobile and Ultra Mobile, both of which currently operate on its expansive network infrastructure. By integrating these brands into its portfolio, T-Mobile aims to streamline services and facilitate easier transitions for customers between providers, as reported by Reuters. With regulatory hurdles cleared, T-Mobile is poised to finalize the acquisition on May 1, pending final procedural steps.

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During an earnings call on Thursday, T-Mobile’s CEO, Mike Sievert, expressed his enthusiasm regarding the regulatory green light, stating, “I am so happy to report that we have received regulatory approval to acquire Mint and Ultra Mobile.” Sievert emphasized the alignment between T-Mobile’s customer-centric approach and the value propositions of the acquired brands, affirming, “We are really looking forward to welcoming them to the ‘uncarrier’ family. And I know they are going to fit in because they are hyper-focused on offering customers compelling products at a great value.”

The acquisition agreement, initially announced in March 2023, outlined a financial arrangement comprising 39% cash and 61% stock, as disclosed by T-Mobile in a previous release. Notably, the final sales price is contingent upon Ka’ena Corporation’s performance during specific periods before and after the transaction’s closure, further illustrating the dynamic nature of the deal.

Source: C Net