STS Media, the parent company of US MVNO FreedomPop, agreed a deal to sell the brand to Red Pocket Mobile, as it looks to make a bid for Sprint’s prepaid brand Boost Mobile.
Reuters reported, citing comments from STS Media CEO Stephen Stokols, that the company will sell FreedomPop and then pursue a partnership with other companies or private equity groups to launch a takeover bid for Boost.
Boost is up for sale as part of concessions offered by Sprint and T-Mobile US to get their merger approved by regulators. The move is designed to reduce the power the companies would hold over the US prepaid market if the tie-up is approved.
Stokols revealed he was speaking to a private equity group about an acquisition of Boost, which is reportedly worth up to $3 billion, shortly after news it was on the market. At the time, he said a private equity group would combine Boost with FreedomPop should an acquisition take place, however the situation appears to have changed.
Other rumoured interested parties in Boost include prepaid wireless company Q Link Wireless and former Boost founder Peter Adderton.
Stokols did not provide details on the FreedomPop sale, but a source told Reuters the value “is in the high eight figures”.
In terms of potential partners to launch the Boost bid, STS Media said it was speaking to private equity groups and a company which owns network infrastructure. FreedomPop currently uses Sprint’s network for its operation.Subscribe to our daily newsletter Back