T-Mobile expands its business in the US and buys a competitor. Apparently, his marketing concept is causing enthusiasm.
In the largest acquisition since the merger with Sprint, T-Mobile incorporates US competitor Mint Mobile. The US subsidiary of Deutsche Telekom announced on Wednesday that it would put up to 1.35 billion dollars on the table for the Mint mother Ka’ena. The final price depends on Ka’ena’s business development. The amount will be paid 39 percent in cash and 61 percent in shares.
The transaction is not expected to impact the outlook for 2023 or the ongoing share buyback. It will have a slightly positive effect on operating profit and cash flow.
The purchase was well received on the stock exchange: T-Mobile shares rose by 0.7 percent on Wall Street, bucking the trend. At EUR 21.95, the shares of the parent company Deutsche Telekom, which are listed in the Dax, at times marked the highest level in almost 22 years.
T-Mobile wants to use Mint’s marketing strategy across the group
Mint, which has a stake in actor Ryan Reynolds, offers prepaid plans. Because consumers are tightening their belts due to high inflation, experts expect strong growth in this segment. According to T-Mobile, Mint Mobile and Ka’ena’s international calling specialist Ultra Mobile will remain as brands. They are an addition to the company’s own prepaid division Metro.
In addition, T-Mobile wants to use the marketing strategy for which Mint is known throughout the group in the future, said T-Mobile CEO Mike Sivert. Mint relies heavily on shareholder Reynolds for its . The Canadian actor, known among other things as the superhero “Deadpool”, left a message on the mobile boxes of Mint customers during the pandemic that they could now use unlimited data volume.