Filed under: Cellphones

We know, the little possibility that the whole deal could fall apart has been keeping you wide awake for months, but at long last, you can push aside your anxiety and hit the sack. Virgin Mobile USA announced today that it had “completed its acquisition of Helio,” and all of the terms put forth on June 27th were used in the final close. Aside from garnering all the necessary regulatory approvals, Helio shareholders SK Telecom and EarthLink have received 13 million shares of Virgin Mobile USA Class A common stock, with a value of around $38 million. It’s also noted that both SK Telecom and Virgin Group will each invest a cool $25 million in Virgin Mobile USA for preferred shares. And then, there was one.

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Filed under: Cellphones

Some particularly juicy rumors die hard, and this one certainly qualifies: CNBC is reporting that SK Telecom is looking to hook up with some private equity firms to buy out Sprint Nextel, though a deal is “not imminent.” This one’s been making the rounds since last year, though it’s possible that SKT sees some new impetus for making a break into the US market now that it’s sold off its share in Helio — and buying the third largest carrier in the country would certainly qualify as “making a break.” It’s claimed that SKT’s only interested in completing a friendly deal — no crazy hostile takeovers here — and some of Sprint’s board members aren’t keen on the idea at this point, so it’s definitely a hit-or-miss proposition. If this all means we can get even half of Korea’s domestic hardware on US airwaves, then hey, no complaints on this end.

Update: The Wall Street Journal is now suggesting that Sprint and SKT are investigating some sort of joint venture — not a full-on acquisition — that would see the lovebirds work together on handsets and services. Possible, but we’re curious to know what exactly Sprint brings to the table in that equation. Thanks to everyone who sent this in!

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Filed under: Cellphones

The future of Helio is still up in the air — one minute it’s about to be sold to Virgin, the next the Ocean 2 is popping up in videos — and it looks like this week will end with some equally ambiguous news: Helio stores appear to be shutting down. That’s the word according to Fierce Wireless, which took this shot of a Helio store in Denver with a sign in the window that reads “The Helio Store is closed. Contact their customer support.” Hmm, that sounds like some part of Helio is going to keep running — hopefully we’ll find out how this soap opera ends sometime soon.

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Filed under: Cellphones

Do you hear that, Helio? That [cue Sir Richard Branson’s soothing voice] is the sound of inevitability. Rumors have been swirling for a few weeks now that SK Telecom — Helio’s majority owner — is getting ready to cut, run, and offload its share to Virgin Mobile, rolling the scrappy MVNO into the one and only virtual network in the US that’s been met with substantial, quantifiable success (more recent stock woes notwithstanding). Now, the Financial Times is reporting that a deal is cued up and ready for a public introduction as early as this week. The sooner, the better, because tons of questions remain about the fate of subscribers and the introduction of the pretty hotly anticipated Ocean 2, a device that at one time could’ve been Helio’s savior; too late for that now, we guess.

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Filed under: Cellphones

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Filed under: Cellphones

Sky Dayton, founder and chairman of the phantasmagorical Helio, has announced that he’s stepping down as CEO to become chairman of the board of the last-man-standing MVNO. Dayton will be replacing Jinwoo So, as chairman of the board, while himself being replaced by Wonhee Sull, formerly the company’s president and COO. “Helio has reached a point in its development where I feel the timing is right for this change… As we have for the past three years, the two of us will continue to define Helio’s direction and future,” said Dayton. It’s possible that with the recent influx of cash (and increased ownership) from from its Korean parents and the dwindling marketshare of MVNOs meant that SK felt it was time to step in and get things on track.

Update: Lots of fun title inaccuracies going on up in here. See above for the latest, correct edits.

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Filed under: Wireless

Everybody is sworn to silence until the auction is over, so we won’t be seeing much more information about this until it’s all over in the spring of next year, but for now it’s still fun to speculate. Business Week is doing quite a bit of that speculating as well, with word that DoCoMo, KDDI, SK Telecom and even China (through the T-Mobile and Global Tower invested Blackstone Group) could be chipping in a few billion here and there to spice things up for Google and friends in the 700MHz C Block auction. DoCoMo, which got burned in the US a while back with pre-Cingular AT&T Wireless, mentioned to Business Week that it’d be interested in partnering with Google for its wireless network, and the other carrier might not be talking but have to be at least considering the possibility of being involved in US wireless data in a big way, and KDDI has a history of being chummy with Google in Japan. The word is that average North American data service bills are less than $10 a month, and are expected to grow to $38+ a month by 2012 — and who wouldn’t want in on that action? As growth slows in Europe and Asia, it seems only natural for the innovators over there to head over here and kick things into gear, but we’ll try not too far ahead of ourselves.

[Via The Inquirer]

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Filed under: Cellphones

We knew Earthlink and SK Telecom were both planning on reinvesting up to $100M each into struggling joint venture Helio back in July, and it looks like all that recent talk about “revised governance” was on point — the deal will effectively shift management control of Helio away from Earthlink and to SKT for the first time in Helio’s history. SKT has already allocated $70M to make the move, and it’s also committed an additional $100M to future handset development and marketing. No word on what other changes SKT plans to make, but we’d happy to see Helio score a much-deserved second chance.

[Via MobileTech News]

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