Sprint buys Virgin Mobile for $483 million

Sprint Nextel has agreed to purchase Virgin Mobile USA for $483 million, in a bid to strengthen its position in the fast-growing prepaid cell phone market. Kansas-based Sprint, the third-largest US wireless carrier, already has a 31 percent stake in New Jersey-based Virgin Mobile USA, which will now become a prepaid Sprint brand.  Sprint already has one prepaid unit, Boost, which offers unlimited calls for a set monthly tariff. ÔÇ£The acquisition of Virgin Mobile USA positions Sprint for even greater success in the prepaid wireless segment,ÔÇØ said Dan Hesse, Sprint Nextel president and chief executive officer, in a statement.  ÔÇ£Prepaid is growing at an unprecedented rate with consumers keenly focused on value. Virgin Mobile is an iconic brand in the marketplace that will complement our Boost Mobile brand.ÔÇØ  Dan Schulman, Virgin Mobile USAÔÇÖs chief executive officer, said: ÔÇ£Virgin Mobile USA redefined the U.S. prepaid segment when we launched seven years ago.  ÔÇ£Sprint is committed to growing its prepaid business and this transaction will provide us with the resources and opportunities to compete more aggressively, and strengthen our position in prepaid.ÔÇØ  Sprint will pay off Virgin's debt when the deal closes in the fourth quarter of this year, which is expected to be around $205 million.  Virgin Mobile USA shareholder SK Telecom, South Korea's top mobile carrier, has confirmed it will sell its 15.3 percent stake in the company. * ┬á┬á┬á┬á┬á┬á*┬á┬á┬á┬á┬á┬á *