Helio to be absorbed into Virgin Mobile USA
The Financial Time is reporting that a source who is close to the situation has intimated that a tentative accord has been made betwixt Virgin Mobile USA and Helio, the deal being Helio will essentially be absorbed into Virgin Mobile USA’s wider wireless network; although there has been no official confirmation of this as yet.
Helio, along with Virgin Mobile USA have been struggling somewhat to forge a larger impression within the American wireless market. Since Virgin Mobile went public last year its share price had dropped down over 75 percent, and while its shares were once worth upwards of $15.00, Virgin Mobile USA’s stoke now trades at a record low.
With their financials cloaked in scandal, the Virgin Groups and Sprint’s joint venture lays claim to in excess of 5 million wireless subscribers, which definitely places Virgin Mobile USA firmly ahead of Helio’s fledgling network of just 200,000 as of January, and they have been struggling to make a profit in the tough mobile arena.
Infused with cash from parent companies Earthlink and SK Telecom, Helio has been splashing the cash with care or consideration, thus SK Telecom took over control of Helio with a extremely over the top cash infusion which gave SK Telecom a majority stake in the joint venture, but sadly Helio couldn’t make it to the finish line.
It is reported SK Telecom will absorb Helio’s complete outfit in to Virgin Mobile UAS’s favourable hand. Helio’s main contribution to Virgin Mobile USA isn’t subscribers but rather their experience in the post-paid wireless market.SK Telecom will apparently secure a 20 percent stake in Virgin Mobile USA which is worth around $50 million.
Source — intomobile