Sprint buys Virgin Mobile

Posted on July 28, 2009


Sprint Nextel Corporation and Virgin Mobile USA, Inc., announced Tuesday morning that their boards of directors have approved a definitive agreement for Sprint to acquire Virgin Mobile USA for approximately $483 million.

This acquisition will strengthen Sprint’s position in the growing prepaid segment by bringing together under one umbrella: Virgin Mobile and Boost Mobile.

“The acquisition of Virgin Mobile USA positions Sprint for even greater success in the prepaid wireless segment,” said Dan Hesse, Sprint Nextel president and chief executive officer said in a release. “Prepaid is growing at an unprecedented rate with consumers keenly focused on value. Virgin Mobile is an iconic brand in the marketplace that will complement our Boost Mobile brand.”

The transaction is expected to be completed in the fourth quarter of 2009 or in early 2010.

What this means for Virgin Mobile customers (like me): Likely nothing. They intend to keep the Virgin Mobile brand and service. So there should not be any interruption in service. Also, it is unlikely that Virgin Mobile customers will be forced to move to Boost Mobile. Hopefully, this means they will have better phones and increased access to Sprint services.

Posted in: Cell Phones