Mobile virtual network operator Virgin Mobile USA L.L.C. is reportedly edging closer to an initial public offering that is expected to take place before the end of the year.
A Reuters report, citing sources familiar with the situation, said the MVNO, which is currently controlled by renegade British tycoon Richard Branson’s Virgin Group plc and domestic telecommunications operator Sprint Corp., has recently talked with up to 10 banks regarding a possible IPO that could include either a flotation or other cash-raising options.
Some analysts have suspected that Sprint would be interested in spinning off its interest in Virgin Mobile as Sprint’s pending merger with Nextel Communications Inc. will include Nextel’s wholly owned Boost Mobile L.L.C. prepaid service targeting a similar youth market to Virgin Mobile.
Branson posted mixed results with its IPO of Virgin Mobile U.K., which following several shaky years has only recently begun to see an increase in trading price.
