Sprint Nextel Gets Antitrust OK To Acquire Virgin Mobile
24 Août 2009 - 6:19PM
Dow Jones News
U.S. antitrust regulators have given clearance to a proposed
$483 million merger between Sprint Nextel Corp. (S) and Virgin
Mobile USA Inc. (VM), according to a notice released Monday by the
Federal Trade Commission.
Sprint announced in July it would acquire Virgin. In buying
Virgin Mobile, Sprint is taking over one of its wireless resellers
and gaining a pay-as-you-go option that rounds out its low-end
offering.
Sprint has struggled to keep its more lucrative contract
subscribers and has turned to its Boost Mobile unit, which provides
a cheaper service without contracts, to shore up defections.
As consumers tighten their belts amid an economic slowdown, more
people are gravitating toward cheaper prepaid plans that don't
require lengthy service contracts.
The deal could be subject to review by the Federal
Communications Commission.
FCC officials weren't immediately available for comment, but
independent analyst Stifel Nicolaus said in July that Virgin Mobile
holds a small number of international wireless licenses, which
would need to be transferred to Sprint to complete the deal and
also give the FCC the jurisdiction to review it.
The FCC last year cleared Sprint's purchase of Clearwire Corp
(CLWR).
-By Fawn Johnson, Dow Jones Newswires; 202-862-9263;
fawn.johnson@dowjones.com