issa asad acquisition deal

Issa Asad and Q Link Wireless Among Group of Buyers Bidding for Boost Mobile

 

Issa Asad

Issa Asad

The prepaid wireless brand Boost Mobile is set to be sold soon in a deal that is valued up to $3 billion. Several interested companies have already started preparing their bids for the sale of this prepaid wireless mobile company, which is owned by Sprint.

T-Mobile an Sprint recently filed to merge their companies in a $26 billion deal. As a result, the United States Federal Communications Commission requires Sprint to sell off Boost Mobile to mitigate the shared market in the business of prepaid phone services.

Currently, the sale of Boost Mobile is awaiting the verdict of the Department of Justice in the United States, but all of the companies that are interested in purchasing the company are already prepping their bids. Immediately after the ruling by the DOJ, the process of selling Boost Mobile will begin.

According to The Street, Q Link Wireless and its Chief Executive Officer and founder, Issa Asad, has already prepared a bid through private equity backing. The bid can pay between $1.8 billion and $3 billion for Boost Mobile.

Q Link Wireless is the third-largest provider of the government benefit program, Lifeline. The company provides free wireless services to low-income consumers that are approved for the government benefit. According to Asad, Q Link Wireless also provides prepaid wireless services to any customer.

Recent reports have stated that the actual selling price of Boost Mobile would largely depend on the quality of Boost customers. The factors could influence the final sale price include Boost Mobile’s churn levels, customer cancellations rates, devices, and their phone plans. However, T-Mobile and Sprint have not yet made these detials public.

An analyst at Cowen approximated that Boost Mobile could be have between 7 to 8 million customers which values the company at $4.5 billion. However, Sprint has also not yet made these details available as well.

Chief Executive Officer of FreedomPop, Stephen Stokols, agrees. He says that the sale of Boost Mobile could be approximately $4 billion. FreedomPop is not yet an official bidder of Boost Mobile. Stokols pubicly stated that he is advising a specific private equity group before preparing a bid for Boost Mobile.

The potential bidders list for Boost Mobile acquisition grows. Peter Adderton, who was the founder of Boost Mobile but previously sold his company to Sprint in 2004, has expressed interest in buying back Boost. However, Adderton has not yet publicly stated his potential bidding value of Boost Mobile.

Adderton said that he was among one of key regulators that required Sprint to place Boost Mobile on current wireless communication towers. This move put Boost Mobile in a better position to compete with the other large prepaid phone companies on the market.

Q Link Wireless believes that the acquisition of Boost Mobile will help their company be among the leading prepaid company in the world.

“We are looking forward to the acquisition of Boost Mobile; we will continue our mission to serve every possible consumer with prepaid wireless services,” said Asad.

Click here to read the full article by The Street: https://www.thestreet.com/investing/sprint-t-mobile-prepping-to-sell-boost-mobile-for-3b-14974051.

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