Printed from http://www.electronista.com

Virgin Mobile to acquire Helio and dissolve brand

updated 01:20 am EDT, Wed June 25, 2008

Virgin Mobile wants Helios

Last reported in May, Virgin Mobile USA is set to absorb SK Telecom-owned Helio in a deal said to approach the former paying the Korean telecommunications firm almost $50 million, leaving SK holding 20-percent of company holdings. The Financial Times writes that the MVNO will dissolve its identity in favor of the more recognizable Virgin Mobile brand, and integrate its 200,000 users into Virgin's customer base of 5.1 million mobile users.

The move comes in response to both companies experiencing an ailing market: shares of Virgin plummeted 75-percent since first listing in October 2007, while Helio faced challenges growing its network size after launching in 2006.

The combination of the two carriers is expected to be quite profitable for both, in spite of the relatively small size of both carriers when contrasted against the four main US cell providers.

Virgin recently posted its financial information for the first quarter of 2008, posting $4.8 million net income - 75-percent down from the year ago quarter - and expects to lose between 130,000 to 160,000 subscribers.



By Electronista Staff
toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

toggle

Most Popular

Sponsor

Recent Reviews

IDrive cloud backup and sync service

There are a lot of cloud services out there, and nearly all of them can be used for backing up key files and folders. A few dedicated ...

Asus Chromebook C300

When Chromebooks hit the market back in 2011, consumers didn't know what to do with them. The low-cost laptops, powered by Google's Ch ...

Plantronics BackBeat Pro Bluetooth headphones

Looking for a pair of headphones that can do everything a user requires is a task that can take some study. Trying to decide on in-ear ...

Sponsor

toggle

Most Commented

 
toggle

Popular News