T-Mobile Acquires Ka’ena Corporation, Parent Company of Mint Mobile, Ultra Mobile, and Plum
T-Mobile has announced that it has entered into an agreement to acquire Ka’ena Corporation, the parent company of mobile virtual network operators (MVNOs) Mint Mobile, Ultra Mobile, and Plum. The acquisition is set to take place later this year and will allow Mint Mobile to retain its current marketing strategy and its most popular $15 USD plan.
Maintaining Marketing Strategy and Humorous Approach
The announcement was made through a blog post and a YouTube video featuring T-Mobile CEO Mike Sievert and Mint Mobile part-owner and actor Ryan Reynolds. The video kept the announcement light and humorous while highlighting the most important points regarding the acquisition.
Access to T-Mobile’s Network and Scaling for Price-Conscious Customers
According to the details of the agreement, the companies can continue to have access to T-Mobile’s network, which includes 5G. However, T-Mobile plans on leveraging its supplier connections and delivery scale to help the companies expand their products to more price-conscious customers in the United States.
Expanding T-Mobile’s Marketing with Mint’s Digital Direct-to-Consumer Marketing Skills
T-Mobile will be able to use Mint’s top digital direct-to-consumer marketing skills to expand into new consumer segments and geographies. Mint’s marketing strategies have proven to be efficient in the past while handled by Maximum Effort, a marketing firm co-owned by Ryan Reynolds himself and responsible for campaigns behind the Deadpool movie franchise, Aviation Gin, Match.com and others.
Mint’s Prepaid Offerings and Leadership Roles
Mint Mobile and Ultra Mobile will complement T-Mobile’s existing prepaid offerings, including Metro by T-Mobile, T-Mobile branded prepaid, and Connect by T-Mobile. Mint’s co-founders David Glickman and Rizwan Kassim will stay on at T-Mobile to continue leading the businesses. Meanwhile, Ryan Reynolds will keep his position as the company’s chief creative officer.
Purchase Agreement and Subscribers’ Expectations
To purchase Ka’ena, T-Mobile will pay up to $1.35 billion, split between cash payments (39%) and shares (61%) and contingent upon the company’s financial results. The deal is expected to complete later this year, pending the fulfillment of customary closing conditions. While we don’t know what changes Mint Mobile subscribers can expect, T-Mobile has promised to keep the current $15 per month pricing plan which includes limitless call and text as well as up to 4 GB of data per month.
Overall, T-Mobile’s acquisition of Ka’ena Corporation, the parent company of Mint Mobile, Ultra Mobile, and Plum, will strengthen T-Mobile’s position in the competitive world of US mobile network operators and provides Mint Mobile’s subscribers access to even more resources.