T-Mobile eyes purchase of Ryan Reynolds-backed Mint Mobile
Yahoo Finance Live anchors Julie Hyman and Brian Sozzi discuss reports that T-Mobile is looking to acquire Ryan Reynolds-backed Mint Mobile.
Video Transcript
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JULIE HYMAN: Well, T-Mobile is reportedly looking to acquire the budget wireless provider Mint Mobile. Why do we care about Mint Mobile? Well, besides the fact that T-Mobile has been making a lot of acquisitions, it's really been leading in the telecom space. Mint Mobile happens to be backed by Ryan Reynolds, the actor. He owns about a quarter of the company.
And he's done pretty well before, Sozz, by selling a stake in his-- or selling, I guess, entirely his liquor company. So you know, kind of interesting, two sides of the story here. The Ryan Reynolds success in business on the one hand and what T-Mobile is building on the other hand.
BRIAN SOZZI: Yeah, T-Mobile. Look, they continue to gain a lot of market share in this industry. Two weeks ago, came out with a positive earnings re-announcement-- or a positive earnings announcement ahead of them ultimately reporting.
But it really goes to show a lot of demand for these mobile-- these prepaid wireless companies. Verizon spent $6 billion on to buy Tracfone to ultimately compete with an AT&T's Cricket Wireless. So a lot of competition here for an asset, Julie, from Ryan Reynolds that has been very much out in front of the media in large part because of his TV ads.
JULIE HYMAN: Yeah, he's been the spokesman for Mint Mobile also. So I guess that's why people associate him with the company. But to your point, you know, we've talked to some analysts who talk about that not only has T-Mobile built up that prepaid card business, but also, of course, it looks like we're heading into maybe a recession, at the very least to slow down. And so are we going to see T-Mobile gaining even more market share because people are going to be watching their wallets even more closely?
BRIAN SOZZI: Yeah, and it's still also-- I generally assume, at least on the Street, a lot of coverage you read, Julie, that T-Mobile, because it brought those Sprint assets, got a lot of great spectrum, that they are-- they have the 5G leadership here in the industry over Verizon and AT&T. And of course, obviously, Verizon and AT&T would scoff at that, of course. But look, T-Mobile's market share gains the past year, the sales, the earnings growth suggests that customers are viewing it as probably the best position in 5G.
JULIE HYMAN: So that was the T-Mobile side of the story. To talk a little bit more about the Ryan Reynolds side of the story. I'm sort of fascinated by the idea that you have these people in the entertainment industry who have investments in various things that they then sell off.
And this, as I mentioned, isn't the first time that Reynolds has done this. He sold some of his liquor company's brands to Diageo back in 2020 for $610 million. And here are some other examples of folks who have done the same. Conor McGregor, the fighter, he and his partners owned another liquor company, an Irish whiskey company called Proper Number 12. They sold that, a majority stake in that for a deal worth up to $600 million.
Brad Pitt selling a stake in his production company. Kylie Jenner, who owns Kylie Cosmetics sold that to Coty for $600 million. She sold a little more than half of her stake. Clooney selling Casamigos, which he owns-- owned with Rande Gerber. And Jay-Z, of course, Tidal. So interesting here that we've got these folks who are, obviously, multihyphenates.
BRIAN SOZZI: You know, Julie, I think it makes sense for The Rock to sell his tequila business, which has been on fire, to the folks over at Molson Coors. I mean, why not? They can use a brand like that. And they already work with him with his energy drink.
It makes a lot of sense to me. I'm making deals right here. Rock, I know you watch every day. You know, get at me. Get at me.
JULIE HYMAN: Are you in the market for tequila business, Sozz?
BRIAN SOZZI: I mean, I don't think I could afford the $2 billion price tag on The Rock's tequila business. But you know, I do enjoy it. It tastes good. I have some of my freezer. It's all good stuff.
JULIE HYMAN: All right.
