Boost Mobile founder offers to buy prepaid brand from Sprint for $2 billion

boost-mobile

Shortly after T-Mobile and Sprint officially announced their merger last year, Boost Mobile founder Peter Adderton said that he’d be interested in making a bid for Boost if it were divested. Fast-forward to today and Adderton is once again talking about buying Boost.

Adderton says that he’s willing to pay up to $2 billion to buy Boost Mobile back from Sprint. As part of T-Mo and Sprint’s merger agreement, they intend to sell Boost Mobile and Sprint’s other prepaid brands to Dish Network for $1.4 billion.

The Boost Mobile founder went on to tell Reuters that he views now as the opportunity to make a bid for Boost because T-Mobile and Sprint are renegotiating the terms of their merger agreement, which expired on November 1st.

On Twitter, Adderton talked up the possibility of buying Boost Mobile, saying that the purchase would help Sprint shareholders get the “true value” of Boost and allow Dish to focus on building out its 5G network.

As part of the agreement to get Department of Justice approval for the merger, T-Mobile and Sprint said they’d sell Sprint’s prepaid brands to Dish for $1.4 billion and sell Sprint’s portfolio of 800MHz spectrum for $3.6 billion in order to help Dish build out its own 5G network. However, Adderton has questioned Dish’s commitment to Boost Mobile customers, though, and so now he’s saying that he wants to buy back the brand that he originally launched. Now we’ll just have to wait and see if something actually comes of Adderton’s efforts.

Source: Reuters

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  • Sharti24

    So are they interested in buying just the boost mobile name for $2 billion or does that include spectrum assets as well to become their own wireless carrier/network?

    • Shaun Michalak

      “Our offer for Boost Mobile still allows Dish to build it’s 5G network, still ticks all the FCC JusticeATR remedies in fact have gone one step further we will commit to
      employee’/dealers, as MVNO we need network’s ,happy to work with Dish to
      wholesale there new network and T-mo”

      Since Boost is a MVNO, it does not own any spectrum because they lease the use of the towers from other companies.. Right now, that would be Sprint.. If sold to Dish, then it would be Dish that supplies the towers. So basically, he wants to turn it into another Straight Talk type of company that uses multiple carriers towers, and not just stuck with one carrier.

  • alfonzso

    How much did Sprint pay for Boost?

    • Shaun Michalak

      Hard to say.. Sprint bought out Nextel for 35 billion, which included Nextel and Boost Mobile, plus spectrum back in 2005.. Problem is, since it is a package deal, there is no way to say how much of that was just boost..

      • Willie D

        Boost was a very small portion. Much like Virgin or Helio, Boost was a brand name licensed to Nextel and Sprint however the customers specifically use Sprint and former Bextel networks when original license was created with Nextel. Basically hes buying back the license of the name, which gives Sprint $2B and less that Dish needs to spend to buy Boost and then build out. This way they save money in the buying of Boost and Dish uses the money for building out instead. The downside, Boost needs a network and Dish needs customers. Deal with Dish means they, Boost, can access Sprint and TMo and Dish.

        • Shaun Michalak

          True, but since Dish is only paying 1.4 billion for all 3 names and customers.. Boost, Virgin, and Sprint Wireless.. Just how much can they really lower what Dish is paying from 1.4 billion for the lose of Boost?? Heck, T-Mobile was originally talking about selling Boost alone for 3 billion. So in that aspect, he is offering them 33% less then they would have asked for it alone anyways..

  • Shaun Michalak

    I am trying to figure out how him buying Boost from Sprint will make it easier for Dish to build out its network..Just think about it.. less brands means less customers which means less money coming in.. How does that “help” Dish?? After all, they would be buying it right now from Sprint, not Dish. and since they are only paying 1.3 billion for all the brands, how much can you take off that for losing 30% of your customers?? I am failing to see how this would be helping Dish in any way..