You might remember at the end of August, we
reported that FreedomPop was in talks with an unnamed major carrier about a possible acquisition of the internet-based telecom company. However, today it was announced that a second company that is not tier 1 has engaged in formal M&A talks with
FreedomPop as well. Neither company has been named yet, as FreedomPop is still considering options.
Undoubtedly, the interest in acquiring FreedomPop for both Tier 1 and Tier 2 carriers is spurred on by the intensifying price battle going on between the communications companies. This intensified rivalry could put FreedomPop in a good position for bargaining, especially as additional companies jump in on the discussion.
FierceWireless reported that FreedomPop CEO Stephen Stokols said the two companies interested in FreedomPop had entirely different motivations and intentions. The major carrier, they reported, is interested in using FreedomPop as a sub-brand to acquire additional customers and the discussions involve a nine-figure valuation. If this merger happened, FreedomPop would likely be under the control of the unnamed major carrier, and would simply be another facet of the corporation.
Alternatively, the smaller telecom company talking to FreedomPop is reportedly more interested in making FreedomPop a central part of the business, designed to draw customers and growth. In that scenario, Stokols said, FreedomPop would have more autonomy, authority and scope, which would be “more interesting.” He also indicated to FierceWireless that company’s perference was to grow the company to a valuation of more than 1 billion dollars within the next 18-24 months so they could conduct an initial public offering.
Stokols said that FreedomPop would make the decision in regards to the acquisition before the holidays.]]>
