T-Mobile Acquires Ryan Reynolds-Backed Mint Mobile for $1.35 billion

T-Mobile US (TMUS) is looking to boost its prepaid offerings by acquiring actor Ryan Reynolds' budget wireless carrier Mint Mobile in a deal worth $1.35 billion.

The deal will see T-Mobile take control of Ka'ena Corporation and its subsidiaries: Mint Mobile, a U.S. direct-to-consumer prepaid wireless brand; Ultra Mobile, a wireless service offering international calling options; and wholesaler Plum.

T-Mobile noted Mint's "industry-leading" direct-to-consumer marketing and said in a statement it "plans to use its supplier relationships and distribution scale to help the brands to grow and offer competitive pricing".

T-Mobile's stock was about 1% higher at noon, however, the stock gave up earlier gains while outperforming bearish activity in stock indices.

The company added that the deal, made up of 39% cash and 61% stock, is expected to close by the end of the year and will not affect previous 2023 guidance. Mint's founders David Glickman and Rizwan Kassim will remain as brand managers, while Reynolds will continue in a creative role.

“Our brands have thrived on the T-Mobile network, and we are thrilled that this agreement will take them even further, bringing the many benefits of 5G to even more Americans,” Glickman said.

T-Mobile CEO Mike Sievert appeared in a Youtube announcement where he confirmed the company will keep Mint's "famous" $15 per month pricing plan. Reynolds, famous for his titular role in the Marvel franchise Deadpool, said the brand's "improvised and borderline reckless" marketing strategy would also remain.

Reynolds is said to own around 20-25% of the acquired Mint, which was founded in 2015 and spun out from Ultra Mobile three years later. This isn't the actor's first successful business sale. Reynolds, whose net worth is estimated at $150 million, bought stake in Aviation Gin in 2018. Two years later, the company was sold to Diageo (DEO) in a $610 million deal.