Sprint Nextel has publicized its intent to purchase Virgin Mobile USA for $483 million. However, Sprint plans to keep Boost Mobile and Virgin brands as separate entities although Virgin Mobile USA CEO Dan Schulan will head Sprint’s entire prepaid business.
Of course, the approval of Virgin Mobile USA’s shareholder is still significant. The Virgin Group and SK Telecom have pledged support of their voting shares in Virgin Mobile USA, and in turn, they will receive shares of Sprint stock equivalent to $5.50 per Virgin Mobile share. Sprint and Virgin Mobile USA expect the deal to close in Q4 of 2009 or Q1 of 2010.
