Los Angeles-based MVNO FreedomPop has engaged merchant bank The Raine Group to advise on its strategic options, TelecomFinance has confirmed.
The mobile provider has been linked with a sale since last year and would fetch at least US$100m, according to…
Los Angeles-based MVNO FreedomPop has engaged merchant bank The Raine Group to advise on its strategic options, TelecomFinance has confirmed.
The mobile provider has been linked with a sale since last year and would fetch at least US$100m, according to a person familiar with the matter.
FreedomPop has been in conversations with potential buyers for months and could receive its first formal bids this week, according to a Bloomberg report citing people with knowledge of the matter. Potential buyers are an internet company and new entrants into wireless, the report said.
Last November Sprint Corp, whose network FreedomPop piggy-backs on, was reported to be interested in buying the virtual carrier, but a takeover did not materialise.
The MVNO is backed by Skype founder Niklas Zennstom, as well as Mangrove Capital and DCM.
It launched its services in 2012 and operates on a freemium model, giving its subscribers a significant amount of services for free before they have to pay. It now has 500,000 customers and it projects this to hit 1 million before the end of the year.
