Sunday, 21 June 2015

Mobilicity Acquistion

Q159: Before the end of 2016, who will acquire Mobilicity?
Telus: 35%
Rogers: 15%
Some Other Company: 15%
Mobilicity will not be acquired: 35%
(The deal must close for this question to resolve.  If Mobilicity is split in such a way that no single company could be said to have acquired it, then the question will resolve for "Mobilicity will not be acquired")

Mobilicity, a Canadian wireless provider, entered creditor protection in September 2013 because of poor financial results.  Telus, another Canadian wireless provider, had attempted to acquire their wireless spectrum, but was blocked by the federal government.  There now seems to be speculation that Telus or Rogers will acquire Mobilicity outright (see article here).  The federal government is said to be agreeable, conditional on transfer of Mobilicity's wireless spectrum to Wind.

Given the interest they Telus has previously shown, I think that they are the most likely purchaser.  There is also a fair chance that no deal will happen before the end of next year, or that a deal will be announced and fall through.  Federal government approval does not seem to be guaranteed.  Finally, it is possible that some other wireless provider, such as Bell or Wind, could buy Mobilicity.

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