Many interested buyers are currently developing bids that range as high as $3 billion for the prepaid phone brand Boost Mobile. The company will be available for purchase as a result of the possible Sprint and T-Mobile merger.
Q Link Wireless Puts Together Proposal to Purchase Boost Mobile
According to CNBC, Q Link Wireless is currently preparing a proposal to purchase Boost Mobile. Q Link Wireless is a South Florida-based company that is the third-largest provider of the Lifeline service government benefit program to low-income American residents. Q Link Wireless also offers prepaid wireless services to non-Lifeline customers.
“Being able to acquire Boost Mobile is a carefully thought-out strategic measure to help grow Q Link Wireless,” said Issa Asad, the Chief Executive Officer of Q Link Wireless.
Judging from the amount that Q Link is willing to offer, Boost Mobile may end up having a value that ranges from $1.8 billion to $3 billion. Clearly Asad is in a competitive mood.
The proposed merger between Sprint andT-Mobile recently received support from a member of the Federal Communications Commission (FCC). Ajit Pai, chairman of the FCC, recently gave a vote of approval to the Sprint/T-Mobile merger.
What exactly made Pai approve the merger? Reports say that Sprint and T-Mobile will attempt to extend 5G coverage to more cities and rural areas across America. The two companies also will sell Boost Mobile as a result of the merger.
These reports will make Asad happy, however, Q Link Wireless cannot make their bid for Boost Mobile until the Sprint/T-Mobile merger is approved by the US Department of Justice. Additionally, there are other companies and businessmen also interested in purchasing Boost Mobile.
Interestingly, the original founder of Boost Mobile, Peter Adderton, is interested in getting his company back. In 2004, he went on to sell it to Nextel. However, with Boost Mobile on sale, Adderton has expressed a desire to buy back his old company.
Adderton’s is also asking the FCC to make sure that after the merger, Sprint and T-Mobile would ensure that the Boost Mobile stays active and competitive in the prepaid telecommunications sector.
Asad is relying on a few factors to guide his decision to purchase Boost Mobile. He has revealed that these factors will include:
◦ The quality of Boost Mobile customers
◦ Their churn level
◦ The devices that their customers use
◦ The phone plans that they subscribe to
So far, Issa Asad has not received any of these details. However, the delay in revealing this information does not deter his intention to purchase the one-time rival company.