Virgin Mobile (VM): Talking To SK Telecom About Deal (SKM)

Virgin Mobile USA (VM) confirms last week’s report that the “virtual” mobile carrier was considering a tie-up with Korean wireless giant SK Telecom (SKM). Statement:

Virgin Mobile USA, Inc. confirmed today that the Company is in preliminary discussions with SK Telecom to explore possible strategic opportunities. Virgin Mobile USA said these discussions are in early stages, and there are no assurances that any transaction will result. Virgin Mobile USA will have no further comment unless a definitive agreement is reached.

As we noted last week, SK’s Helio joint venture with EarthLink (ELNK) could make a solid addition to Virgin. Both re-sell service on Sprint Nextel’s (S) network, and their businesses are complementary, but don’t overlap. (A SK Telecom rep previously called the deal rumours “groundless.”)

See Also:
Why A Virgin Mobile-Helio Deal Makes Sense
Virgin Mobile USA Stinks Up Q1, Blames Economy, Says Q2 Will Be Worse
Helio: How To Lose Half A Billion Dollars In Three Years

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