US-based telecom operator Sprint Nextel is likely to buy out Virgin Mobile USA in a deal worth $483 million. Sprint, which already owns 13.1 per cent of Virgin Mobile, will pay in shares and cash to buy the additional stake from the Virgin Group, South Korea’s SK Telecom and public shareholders. The company is also planning to cover all of Virgin’s debt, estimated at about $205 million as of September 2009. Sprint has been facing difficultly in its post-paid mobile services business and has been struggling with declining subscriber numbers and low user retention. The move will enable Sprint to expand its subscriber base as well as increase its retail presence. The deal is expected to be closed by end-2009.
