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Report: T-Mobile Looking for Another Boost Mobile Buyer

Earlier this week, there were reports that T-Mobile and Dish are expected to close the Boost Mobile deal by July 1. But now, it looks like there might be some changes to this.

As reported by Fox Business, it looks like T-Mobile could be looking for a different buyer for the business. The report says:

"FOX Business has learned (Charlie) Ergen is balking at the sale price as the value of many assets declined amid the coronavirus pandemic-spawned recession. And T-Mobile is growing frustrated and looking at other potential buyers, people with knowledge of the matter say."

In addition to this, NWIDA has acquired a memo that Dish recently sent out to Boost Mobile employees. The memo read:

"T-Mobile has met all the closing conditions set forth in the consent degree and purchase agreements. Nevertheless, DISH has asserted that they do not believe all closing conditions have been met... That being said, we have made the decision to pause all divestiture transition activities effective immediately."


A person close to T-Mobile also shared that the Dish Network CEO has been "extremely hard to work with and not living up to their end of the bargain."

The Boost divestment was supposed to have been completed by June 1st as part of T-Mobile and Sprint's merger agreement with regulators. The agreement was that a third-party would be purchasing the prepaid brand, along with its customers and assets, for a price of $1.4 billion. But because of the pandemic, the value of assets have fallen.

With today's development, it looks like T-Mobile and Sprint prematurely celebrated their merger. T-Mobile is now looking for alternative buyers and is considering an arrangement of multiple private parties who want to fund the acquisition. One of the parties that previously showed interest is Japanese-owned Softbank. However, they are also reportedly dealing with financial problems at this time.

In any case, T-Mobile really has to find someone who'd be willing to purchase the prepaid brand. As of this writing, handset inventory at the brand is constrained. This comes from Wave7 Research, who regularly checks the prepaid industry. The lag in this supply is not to be blamed on the ongoing health crisis, but on the lack of phones that T-Mobile procures for the prepaid brand. But because they are expecting that the business will soon be owned by a different party, they won't be getting revenues from these pretty soon.


Source: GSMArena 

1 comments:

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  1. Yay! Such joy this is bringing all of us that have to go through with this! ..and that was sarcasm if it wasn't obvious. Health to all and BLM!

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