Moblicity came into the Canadian wireless scene with a bang by offering potential customers salvation from the Big 3 with lower prices, unlimited plans and no contracts. In truth, this is exactly what they brought, but fierce competition from rival new entrants and incumbent carriers got the best of them.
Mobilicity’s CEO recently departed, only to be replaced by its Chief Customer Officer, and is now facing extinction. Today, a court document gives an update on the company and its future.
Section 8 states an “update on the proposed transaction,” which could be TELUS’ bid to acquire the carrier. TELUS has now attempted twice to bid for Mobilicity and its spectrum, only to be denied on both occasions. Apparently an offer is still being reviewed by Industry Canada and “the Applicants have continued their efforts in furtherance of their proposed acquisition transaction.”
If this “Proposed Transaction” doesn’t pan out, then Mobilicity is planning to go another route and auctioning off their assets to the highest bidder. The court doc reveals that bidders must submit their intent by December 2nd, then after those deemed as a “Qualified Bidder” will start an auction on December 9th.
The doc declares that a qualified bidder is:
– (i) has a bona fide interest in an acquisition of the Assets;
– (ii) has delivered all of the Participation Materials prior to the Participation Deadline; and
– (iii) has the financial capability
An interesting paragraph stated that bidders can “offer to purchase some or all of the assets on terms and conditions reasonably acceptable.” Which means that those interested can just bid to acquire their spectrum or subscriber base, or take the entire Mobilicity package.
At last count, Mobilicity had over 189,000 wireless subscribers.