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Two Operators Are Interested In Acquiring FreedomPop For $100+ Million

The FreedomPop acquisition story keeps getting more interesting. Earlier in the week we reported that a major carrier was in negotiations to buy the Sprint freemium MVNO.

Now it looks like FreedomPop is that target of a bidding war. According to a report by Bloomberg Businessweek there are now not one but two mobile operators seeking to acquire FreedomPop. One is a US based company and the other is international and the offers are in excess of 100 million dollars.

FreedomPop is notable for its free mobile phone service which includes 500MB of data, 200 voice minutes and 500 texts per month at no charge. Voice and text use FreedomPop's VOIP calling and SIP messaging app. The company makes its money on overage charges and extra cost add-ons like data rollover, visual voicemail and "dedicated" phone support. A FreedomPop spokesperson told Businessweek that the company's revenue and subscriber count are increasing by 50% every quarter and the company is on track to hit one million subscribers sometime next year.

No word yet on who the two potential buyers are but speculation is that one of them is Sprint. As for the other your guess is as good as any one's. The likeliest candidate is probably Dutch operator KPN, the parent of the Belgian operator BASE that FreedomPop will launching service on soon. But FreedomPop's CEO has previously mentioned that its been negotiating to offer service several other European operators as well as a US based GSM carrier.

I suspect FreedomPop's investors, who put $16 million into the company, are pretty pleased with that $100 million plus projected sales price.

Related:
A Major Carrier May Acquire Freemium MVNO FreedomPop
FreedomPop To Offer Free Mobile Service in Belgium, US GSM Plans "Progressing"
Prepaid Operator Profile: FreedomPop

15 comments:

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  1. So lets see if I understand correctly. Freedom Pop is using Wi-Fi VOIP calling, not cell towers for the 200 free minutes??

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    1. No, you can use either cellular data or WiFi to make VOIP calls with the included 200 free minutes.

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    2. WiFi voip or Sprint Data Voip, but not Sprint Voice minutes.

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  2. Dennis how many subscriber do you think FreedomPop has???
    Any idea??

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    1. I estimate about 140,000. They need that many to hit 1 million by the end of 2015 with a 50%/quarter growth rate.

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    2. Wow that seems very low for $100 million.

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  3. KPN could have an eye on FreedomPop? Very interesting. You know who owns a portion of KPN, don't you? . . . Mr. America Movil (Tracfone) himself, Carlos Slim!!

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    1. True, but Slim's America Movil holds a minority (27%) position in KPN so I don't think they have much say in whether KPN acquires FreedomPop or not.

      But America Movil bought Simple Mobile and PagePlus. I wouldn't be surprised if AM is one of the operators bidding for FreedomPop .

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    2. I agree, Dennis. I could see America Movil bidding directly on FreedomPop, if it felt that FreedomPop would fit into its long-range plans. And, right now, AM does have money to spend, given that it was forced to sell off some of its Mexican holdings due to recent Mexican legislation aimed at breaking up its monopolistic grip on Mexican telecommunications.

      Guess we'll just have to wait and see what happens.

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  4. Well if it is Sprint, I am sure they will ruin it like they did Zact/VM Custom! Probably kiss the free app good bye.

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    1. Yes. It will get an inscrutable name, no doubt, like "Virgin Power", and cost more than existing Virgin sub-divisions, and more than existing FreedomPop.

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    2. at least "Virgin Power" would be a better name than the awful "FreedomPop" name!!!

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  5. I'd really like to see a GSM version of this plan.

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    1. It seems that only Sprint came in low enough to attract the innovative MVNO plans. eg: Ting, Zact, FP and Republic Wireless.

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