AT&T Acquiring Leap Wireless for $1.19 Billion
AT&T has just announced plans to acquire prepaid-wireless company Leap Wireless International. AT&T says it will absorb the company behind the Cricket brand for approximately $1.19 billion in cash.
Confirmed by the Wall Street Journal, the deal is "intended to kick-start the carrier's expansion into the low-cost market and values Leap shares at $15 a piece, a roughly 88% premium to the company's closing price Friday."
Although AT&T hasn't said much about the acquisition yet, we're told the deal will include Leap's various licenses, network assets, retail stores and - this could be the biggest part - approximately five million subscribers.
For now, AT&T plans to retain the Cricket brand name and, best of all for current Cricket subscribers, provide its customers with access to AT&T's 4G network.
Naturally, the deal is subject to review by U.S. antitrust authorities but if all goes as planned, the deal will close in six to nine months.