Verizon to Buy Wireless Reseller TracFone for $6.25 Billion
September 14 2020 - 8:43AM
Dow Jones News
By Drew FitzGerald
Verizon Communications Inc. said it has agreed to buy wireless
reseller TracFone for about $6.25 billion in cash and stock,
bringing the country's largest reseller of cellphone services under
the wing of the country's biggest wireless provider.
TracFone, a unit of Mexico's América Móvil SAB, operates in the
U.S. under its namesake brand as well as StraightTalk and Net10.
The company doesn't run its own physical network in the U.S. and
instead rides on other cellphone carriers' systems for a fee.
About 13 million of TracFone's 21 millions subscribers already
use Verizon's network through an existing agreement.
Verizon said the deal will include about $3.125 billion of cash
and $3.125 billion in Verizon shares. TracFone could get an
additional $650 million cash payment tied to some performance
measures and other commercial arrangements.
Write to Drew FitzGerald at andrew.fitzgerald@wsj.com
(END) Dow Jones Newswires
September 14, 2020 08:28 ET (12:28 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
America Movil SAB de CV (NYSE:AMOV)
Historical Stock Chart
From Mar 2024 to Apr 2024
America Movil SAB de CV (NYSE:AMOV)
Historical Stock Chart
From Apr 2023 to Apr 2024