Sprint in Talks to Acquire FreedomPOP

[marioc21]

Well, I remember a fiercewireless story about freedompop talking to one of the big 4. Speculated that it was probably sprint. Now we have a little more light on the subject.

 

http://www.usatoday.com/story/tech/columnist/shinal/2014/11/12/tech-earnings-wrapup-new-tech-economy-john-shinal/18801555/

 

SAN FRANCISCO — Sprint Corp., the struggling No. 3 U.S. wireless player now owned by Japan's Softbank, is in talks with a Los Angeles-based wireless startup about a possible acquisition that could boost Sprint's revenue growth and lower its subscriber-acquisition costs, said two people familiar with the talks.

 

The talks are fluid, meaning they could lead to an investment, an acquisition or no deal between the companies. Other suitors have emerged for FreedomPop, among them a large U.S. technology company and a smaller wireless carrier, said these people.

 

An acquisition would likely value all of FreedomPop in a range between $250 million and $450 million, while an investment would value it closer to $200 million.

 

...

 

"Our goal next will be to get to postpaid phone net additions," which are the path to profitability for Sprint, Claure said on the conference call.

 

FreedomPop has been acquiring post-paid wireless subscribers on the cheap, then has held onto them thanks to plans that begin at $5 a month and a peer-to-peer platform for trading minutes.

 

The startup, which began life as a wireless hotspot provider, acquires 95% of its subscribers online, making its customer-acquisition costs of $4 per user a tiny fraction of Sprint's.

 

FreedomPop is converting 50% of consumers who try its free service into paying customers, company officials told me in an interview earlier this year.

 

The two companies have had a partnership for more than a year, with Sprint adding thousands of the startups users onto its wholesale wireless network.

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[sbolen]

Every story I see the begins like this: Sprint Corp., the struggling No. 3 U.S. wireless player now owned by Japan's Softbank ...

 

... reminds me of the mid-90s, when Apple couldn't be mentioned in any write-up without seeing the word beleaguered somewhere. It turned out OK for Apple, and it'll likely turn out OK for Sprint. It's just funny seeing the parallels. 

[Conan Kudo]

Every story I see the begins like this: Sprint Corp., the struggling No. 3 U.S. wireless player now owned by Japan's Softbank ...

 

... reminds me of the mid-90s, when Apple couldn't be mentioned in any write-up without seeing the word beleaguered somewhere. It turned out OK for Apple, and it'll likely turn out OK for Sprint. It's just funny seeing the parallels. 

On the flip side, the same thing was said of Commodore International, Palm, Northern Telecom (Nortel), WorldCom, and many others. They all eventually failed.

[sbolen]

On the flip side, the same thing was said of Commodore International, Palm, Northern Telecom (Nortel), WorldCom, and many others. They all eventually failed. 

 

[themuffinman]

On the flip side, the same thing was said of Commodore International, Palm, Northern Telecom (Nortel), WorldCom, and many others. They all eventually failed.

 

, 

[Destroyallcubes]

I dont think sprint will fail. The wireless industry cant take just 3 competitors, according to the FCC. So if sprint did fail, how do you think the spectrum would get divided? If it ks a pay for spectrum thing Tmobile gets left out, and then screwed. Customer wise it would be a huge chunk headed for the Top 2 , a lot less of a percentage to Tmobile. Would be a bad scenario for Tmobile in the end.

[JeffDTD]

Fail? Softbanks not going anywhere. Sold or merged into something else? Maybe. Cmon.

[S4GRU]

Sprint is healthy enough to buy out other companies and we have blathering about going out of business? Please.

[thewezgrays]

I would love this to remain a thread about Freedompop being bought out... would be interesting to see what Sprint changes -- as well as what others think will happen etc...

 

Right now I am very happy with my Freedompop phone as my second phone and I am not paying anything for it!  I miss tri-band but, it is saving me a lot of money. (I think it makes a great 2nd phone -- but I wouldn't use it as my primary phone due to being restricted to voip -- and data isn't always strong enough for that)... 

 

As far as the off topic discussion, I loved the Sprint compared Apple comment -- but that was rightfully followed up to a comment to Sprint compared to Commodore/Palm/etc... both are rather ludicrous comparisons, but funny.