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Mobilicity is currently “in discussions with multiple parties in connection with an acquisition”

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Mobilicity, legally known as Data & Audio-Visual Enterprises Holdings Inc., has announced today that they’ve officially ‘adjourned the debtholder vote on the previously announced recapitalization plan.” The startup wireless company has been searching for a buyer for many months and also declared they are currently “in discussions with multiple parties in connection with an acquisition plan of arrangement.”

TELUS was previously interested in acquiring Mobilicity for $380 million, including their 250,000 wireless subscribers, 150 employees and valuable spectrum. However, the Industry Minister Christian Paradis declined the deal and stated “Our government has been clear that spectrum set aside for new entrants was not intended to be transferred to incumbents. We will not waive this condition of licence and will not approve this, or any other, transfer of set-aside spectrum to an incumbent ahead of the five-year limit.”

Rival carrier WIND Mobile recently expressed interest in merging their businesses. Tony Lacavera, WIND Mobile’s Chairman and CEO, said after the failed TELUS acquisition that there’s a “renewed opportunity for discussion” to purchase Mobilicity. In addition, US-based Verizon is rumoured to come north and has been in discussions with both WIND Mobile and Mobilicity.

Stewart Lyons, Mobilicity’s President and COO said, “We are working diligently to reach an acquisition agreement and thank our customers, dealers, employees and partners for their continued support as we see this process through to its completion.”

Source: CNW

  • Thomas Ramsay

    if Verizon does come to Canada they will be set up as a new entrant.

    • Liberal Phone Person

      verizon will not be worse than robellus. at least for the first 4-5 years.

  • hoo dat

    They’re bleeding $30M per month, a figure I would never believe if it didn’t come from Mobilicity themselves, they’ll talk to pretty much anybody at this point.

    Would it be possible that it might be beneficial for Verizon to let WIND buy up Mobilicity and then buy out the complete package? Will Accelero be involved adding their Allstream spectrum?

    • Sweet

      What I find suspicious about the $30M/month figure is that not long before releasing that figure, they claimed they were losing $74M/year ($6.17M/month).

    • hoo dat

      Agreed. And before this they claimed to be losing $20M per month. Are they playing the pity card? But to what end? They’re not making themselves any more attractive to potential buyers if that’s what they think they’re up to.

      With Bitove still at the helm I guess anything’s possible.

    • Sweet

      Given that the $30M/month figure came out around the time the government was deciding whether or not to approve the Telus deal, I’m figure Mobi was indeed playing the pity card to encourage the government to approve the deal. That’s my guess.

  • Thomas C. Riddell

    Verizon is not a good Fit here there are Rogers only Worse X10 I rather See T-Mobile in Canada

  • CADDMan71

    IMHO, I think it shows how much people really don’t care about Mobilicity anymore based on the mere handful of comments that have been left about this story (as of 9 hours after it’s posting, the story has only 9 comments). A year ago this comment section would be full of opinions here and opinions there, but today barely anything.
    What do I think? If Wind were to scrounge up enough money to buy Mobilicity, the additional customers producing revenue will certainly help with Wind’s future bottom line, but most definitely won’t be the solution.

    • Sweet

      I was expecting far more comments as well.

    • hoo dat

      Mobilicity’s forum over at Howardforum is quite telling. Even with everything that’s going on there could be days between posts. It used to be a hive of activity but now it seems most have moved on. This corresponds with a recent estimate of Mobilicity’s subs at around 195K and going down daily. I guess that explains $25 all in plan they had over the long weekend, to try and plug the hole.

    • CADDMan71

      It’s unfortunate that DAVE’s (aka Mobilicity) plan from the very beginning was to create a wireless carrier just for the purpose of selling it at a profit and had no long term plans for keeping it afloat in the event a buyer couldn’t be found in the short term. Knowing that they’re losing money hand over fist I’m thinking those still invested in DAVE are wondering what they got themselves into, unless you believe that much of DAVE’s ‘debt’ is actually interest ‘profit’ that the investors are hoping receive from a possible suitor.

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