💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Exclusive: Amazon interested in buying Boost from T-Mobile, Sprint - sources

Published 05/31/2019, 12:08 AM
© Reuters. FILE PHOTO: The storefront of a Boost mobile phone store is seen in the Brooklyn borough of New York
GOOGL
-
AAPL
-
AMZN
-
META
-
GOOG
-

By Angela Moon, Sheila Dang and Diane Bartz

(Reuters) - Amazon.com Inc (NASDAQ:AMZN) is interested in buying prepaid cellphone wireless service Boost Mobile from U.S. carriers T-Mobile US Inc and Sprint Corp, two sources familiar with the matter said on Thursday.

Amazon is considering buying Boost - currently one of Sprint's prepaid brands - mainly because the deal would allow it to use the new T-Mobile's wireless network for at least six years, one of the sources said.

New T-Mobile is the name used by T-Mobile and Sprint to refer to the new entity that will result from their potential merger. 

Amazon would also be interested in any wireless spectrum that could be divested, the source said.

Amazon declined to comment. T-Mobile and Sprint did not immediately respond to requests for comment.

It was not immediately clear why the largest U.S. online retailer would want the wireless network and spectrum.

Amazon has already been building experience by offering phone calls through its Echo Connect product, which uses a person's home phone service and allows an Alexa-enabled voice-activated speaker to make phone calls.

Amazon, which started out selling books, has a long history of exploring new ventures, such as making original TV shows for Amazon Prime members. It is now one of the Big Four technology companies along with Alphabet (NASDAQ:GOOGL) Inc, Apple Inc (NASDAQ:AAPL) and Facebook Inc (NASDAQ:FB), and is a leading cloud services provider.

T-Mobile and Sprint have already pledged to sell Boost as part of measures to reduce their market share in the prepaid wireless business and gain regulatory approval for their planned $26 billion merger.

The U.S. Justice Department would need to scrutinize the buyer of a divested asset to ensure it would stay viable and preserve competition.

The carriers are also considering divesting wireless spectrum, or airwaves that carry data, in order to push the merger through.

The merger, if approved, would leave the United States with three wireless carriers instead of four. Some consumer advocates have raised concerns that the merger could raise prices for wireless users and have called for an additional competitor.

The sale of Boost could fetch up to $3 billion, potential bidders previously told Reuters.

This month, analysts at Cowen estimated Boost has 7 million to 8 million customers and a transaction could be valued at $4.5 billion if the deal included wireless spectrum, or the airwaves that carry data, and facilities.

© Reuters. FILE PHOTO: The storefront of a Boost mobile phone store is seen in the Brooklyn borough of New York

Sprint has not disclosed the number of Boost customers.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.