Boost founder ready to buy back its brand from Sprint for $2 billion

Founder of Boost Mobile is ready to spend $2 billion to buy its prepaid wireless brand back from Sprint Corp, as Peter Adderton shared his intentions with Reuters in an interview on Monday, a considerably higher figure from the amount satellite TV provider Dish Network is willing to pay to Sprint for buying whole of its prepaid wireless business.

In July, Sprint succeeded to get a go ahead from the U.S. regulators for its $26.5 billion deal to merge with bigger rival T-Mobile US Inc, for which both the companies agreed with the regulators to dispose off some of Sprint’s units. Part of that concession to regulators, companies were to sell prepaid wireless business of Sprint, including Virgin and Boost brands, to Dish for $1.4 billion as well as sale of some of its wireless spectrum to Dish for $3.6 billion.

But despite getting approval from the U.S. regulators, the merger deal is still to be concluded successfully as it is facing a lawsuit by state attorneys general who have been alleging that the merger would be harming the consumers in the United States.

It is the right time to make an offer to them, as the merger agreement between T-Mobile and Sprint had expired on November 1, and now the two companies are going through a re-negotiation process, Adderton said.

Earlier this month, John Leger, Chief Executive of T-Mobile, rejected any idea of reducing the deal amount of $26 billion to be discussed in process of renegotiation.

Since last year, by the time when announcement of the T-Mobile-Sprint merger was made public, Adderton on Twitter remained opposing the merger deal for being harmful to lower-income consumers who mostly rely upon prepaid wireless services.

Boost Mobile was originally founded by Adderton in his native country Australia and later on in 2004 sold its U.S. business to Nextel, which was later bought by Sprint.

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Maria Wiggins

Written by Maria Wiggins

Maria Wiggins:- News Stories
I am Maria Wiggins and I have over 11 years experience in the Technology industry giving me a vast understanding of how news affects the financial markets. I am an active day trader spending the majority of my time analyzing earnings reports and watching commodities and derivatives. I have a Masters Degree in Economics from Westminster University with previous roles counting Investment Banking.

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