Mint Mobile, the prepaid wireless brand in which Ryan Reynolds holds a minority ownership stake, has been acquired by T-Mobile in a deal worth up to $1.35 billion.
Under the pact, expected to close later this year, T-Mobile will acquire Ka’ena Corp. and its subsidiaries and brands: Mint Mobile, international wireless service Ultra Mobile and wholesaler Plum. T-Mobile said it will be able “to leverage Mint’s industry-leading digital [direct-to-consumer] marketing expertise as part of its broader portfolio to reach new customer segments and geographies.”
Following the deal’s close, Mint Mobile founders David Glickman and Rizwan Kassim will remain at T-Mobile to manage the brands, which will “generally” operate as a separate business unit.
Reynolds will continue in his creative role as a spokesman for Mint. The actor-entrepreneur owns a roughly 25% stake in Mint, according to Bloomberg, which previously reported on the company’s deal talks with T-Mobile.
“Mint Mobile is the best deal in wireless and today’s news only enhances our ability to deliver for our customers,” Reynolds said in a statement. “We are so happy T-Mobile beat out an aggressive last-minute bid from my mom, Tammy Reynolds, as we believe the excellence of their 5G network will provide a better strategic fit than my mom’s slightly-above-average mahjong skills. I am so proud of the entire Mint team and so excited for what’s to come.”
T-Mobile said it will maintain Mint Mobile’s current pricing plans, which start at $15 per month for unlimited talk and text and up to 4 GB of data/month.
T-Mobile will pay up to a maximum of $1.35 billion in a combination of 39% cash and 61% stock to acquire Ka’ena. The actual price to be paid by T-Mobile will be based on Ka’ena’s performance during certain periods before and after the closing and is also subject to working capital adjustments and other contractual reserves, the carrier said. T-Mobile said it does not currently expect the transaction to have any impact on the company’s 2023 financial guidance or its ongoing stock repurchase program.
“Mint has built an incredibly successful digital direct-to-consumer business that continues to deliver for customers on the Un-carrier’s leading 5G network and now we are excited to use our scale and owners’ economics to help supercharge it — and Ultra Mobile — into the future,” T-Mobile CEO Mike Sievert said in announcing the deal.
On social media, Reynolds shared a video (produced by his Maximum Effort advertising and production company) featuring Sievert. “Nice to have a new dad!” Reynolds exclaims at the end of the clip after he hugs the T-Mobile chief executive.
In 2020, Diageo PLC acquired Aviation Gin, in which Reynolds was a part-owner, for up to $610 million.