The Department of Justice could move to block the sale
Back in March, T-Mobile released a humorous video announcing that it was set to acquire Ryan Reynolds’s Mint Mobile. Fast-forward a few weeks and the deal is looking shakier than ever following reports that the Department of Justice could move to block the sale.
T-Mobile’s acquisition of Mint Mobile came with the buyout of its parent company Ka’ena Corporation for $1.35 billion, but the DOJ is considering starting a lawsuit to stop the purchase, the New York Post reports.
One of the reasons the DOJ has implicated itself in the sale is because it is concerned that the merger will result in higher prices for customers. The report claims insiders view this as the DOJ trying to make an example out of a high-profile deal that features a celebrity. Knowing that Reynolds is involved, more people will be curious to see how this all plays out, regardless of whether it actually pursues the aforementioned lawsuit.
The lightheartedness around T-Mobile’s Mint acquisition has seemingly come to an end
Mint Mobile is an MVNO, or mobile virtual network operator, that uses T-Mobile’s network as its backbone. Interestingly, T-Mobile already has its own MVNO in Metro by T-Mobile which is in direct competition with Mint, and several other MVNOs use the magenta network, like Google Fi and Boost Mobile.
Following the initial announcement of the acquisition, Reynolds assured Mint subscribers that nothing would change about the plans, though he did jokingly say that their “incredibly improvised, and borderline reckless messaging strategy will also remain untouched.”
Even if the deal falls through, T-Mobile continues its goal of growing 5G by calling on Congress to renew the FCC’s authority to lead spectrum auctions and grant spectrum licenses to other companies.
For those who are less invested in that, T-Mobile also recently revealed a new deal that would allow its customers to continue to watch MLB games for free as part of their membership.
Thanks: Moshe