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Aug. 26, 2009

Sprint Nextel’s proposed $483 million acquisition of Virgin Mobile USA moved a step closer to reality after the Federal Trade Commission (the FTC) gave its nod of approval to the transaction.

Sprint Nextel already owns a little over 13 percent of Virgin Mobile, which has been using Sprint’s network as part of its MVNO model.

However, the FCC still needs to review the proposed acquisition, which was announced a little over three weeks ago.

Virgin Mobile reported a second-quarter net loss of 269,239 customers, but its profit still soared to $17.2 million compared to 2008's meagre $3.5 million.

As for Sprint, its Boost Mobile prepaid division’s net adds totaled about 777,000 in the second quarter, representing the highest reported level of prepaid performance by any U.S. wireless carrier in over three years.

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Source: The FTC.