Ryan Reynolds-backed Mint Mobile bought by T-Mobile for $1.35 billion
Hollywood superstar Ryan Reynolds has seen another business bet pay off, as T-Mobile is set to buy Mint Mobile— the wireless provider in which he holds an estimated 25% stake—as part of a deal worth more than $1 billion.
T-Mobile announced on Wednesday that it had agreed to buy Mint’s parent company Ka’ena Corporation, as well as all of its subsidiaries and brands, which also include Ultra Mobile and wholesaler Plum.
The deal would be worth a maximum of $1.35 billion, T-Mobile said, with the acquisition being made in a combination of 39% cash and 61% stock. The final price will be dependent on Ka’ena’s performance before and after the deal is closed.
Reports that T-Mobile was interested in buying Mint first began circulating earlier this year.
T-Mobile said Wednesday that it would use its supplier relationships and scale to help Mint and the other Ka’ena brands grow, noting that its involvement would help the companies offer competitive pricing and a bigger range of devices to Americans looking for value.
In return, T-Mobile said it would benefit from Mint’s “industry-leading digital direct-to-consumer marketing expertise as part of its broader portfolio to reach new customer segments and geographies.”
Reynolds has starred in Mint Mobile’s TV commercials and pushed the firm heavily to his millions of social media followers.
In a statement on Wednesday, Reynolds—who will remain a spokesman for Mint—said the deal would enhance Mint’s ability to deliver for its customers.
“We are so happy T-Mobile beat out an aggressive last-minute bid from my mom Tammy Reynolds as we believe the excellence of their 5G network will provide a better strategic fit than my mom’s slightly-above-average mahjong skills,” the “Deadpool” star joked. “I am so proud of the entire Mint team and so excited for what’s to come.”
Reynolds’ Midas touch
The deal marks the latest major deal involving a company Reynolds co-owns.
In 2020, beverage giant Diageo purchased Aviator Gin—a liquor brand co-owned by the actor—for up to $610 million.
Reynolds is also a part owner of Welsh soccer club Wrexham FC, and cofounded and sold digital marketing agency Maximum Effort which he claims was born ‘accidentally’.
Mike Sievert, CEO of T-Mobile, said in a statement on Wednesday that Mint had built an “an incredibly successful digital direct-to-consumer business.”
“Over the long-term, we’ll benefit from applying the marketing formula Mint has become famous for across more parts of T-Mobile,” he said. “We think customers are really going to win with a more competitive and expansive Mint and Ultra.”
After the deal is closed, Mint’s founders David Glickman and Rizwan Kassim will manage the Ka’ena brands at T-Mobile, with the brands operating as a separate business unit.