Ryan Reynolds is the latest celebrity to witness his business venture mature into a high-profile acquisition.
T-Mobile (NASDAQ:TMUS), on Wednesday, confirmed it would buy Mint Mobile, the budget wireless provider backed by the "Deadpool" actor, for as much as $1.35 billion in a cash-and-stock deal.
To boost its prepaid phone business and reach more lower-income customers, the second-largest US wireless provider will take over Mint's closely held parent company, Ka'ena Corp., in the 39% cash and 61% stock purchase.
According to the release, "the actual price to be paid by T-Mobile will be based upon Ka'ena's performance during certain periods before and after the closing."
The agreement will also allow T-Mobile to tap a larger share of the pay-as-you-go customer base, whose numbers could surge as credit-challenged people shy away from hefty monthly bills.
Though the purchase will add slightly to T-Mobile's core adjusted earnings, the telecom operator does not expect it to affect its outlook for 2023.
Meanwhile, T-Mobile said Mr. Reynolds would stay on in a creative capacity following the planned takeover and keep the Mint Mobile brand, which is known for its marketing tactics. Thus, the actor will continue to appear in Mint Mobile's ads.
"T-Mobile has assured me that our incredibly improvised and borderline reckless messaging strategy will also remain untouched," Mr. Reynolds jokingly said, along with T-Mobile's chief executive, in a video posted on Twitter.
Mint Mobile is a virtual network operator (or MVNO) that buys wholesale access to a wireless network instead of owning and operating it.
Such arrangements allow major wireless carriers to sell excess capacity on their networks and gain customers without bearing the costs of marketing or signing them up.
Striking an optimistic tone about the acquisition's possibilities, chief executive Mike Sievert said,
"Over the long term, we'll also benefit from applying the market formula Mint has become famous for across more parts of T-Mobile." He added, "We think customers are really going to win with a more competitive and expansive Mint and Ultra."
The deal is expected to close later this year.
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