This article was published 16 years ago

UPDATE: Virgin Mobile buys Helio

Good news, Helio customers, your phone still works. The only difference you’ll notice is the name: Virgin Mobile.

Virgin Mobile USA will pay $39 million in stock to buy operator Helio, the company said Friday.

As part of the purchase, Virgin Group, which owns Virgin Mobile USA, and SK Telecom, the South Korean phone giant that holds a majority stake in Helio, will each invest $25 million in the combined company. In exchange for its investment, SK Telecom will be given a 17 percent stake in Virgin Mobile.

Ouch! Helio must have spent hundreds of millions of dollars $500 million and they had to sell the company for $39 million! Now that’s is a loss!