JB Hi Fi could be a big winner after it was revealed that the retailers key mobile partner Telstra has agreed to buy Boost mobile for $100M.
The youth targeted brand, that operates on the Telstra network is set to deliver an audience that Telstra who is seen as an expensive 5G network has struggled to deliver in the past.
Jason Hayes who was recently promoted to CEO of the Boost business in Australia said “My role over the coming months will be to help the Boost business transition and integrate into Telstra”.
Hayes who is set to leave the business, with questions already being raised about the culture of the Boost brand under Telstra management after the current management succesfully went where Telstra has been unable to go with their Belong brand which appears to have been a dismal failure.
Hayes added “The strong performance of the business means that Telstra is acquiring a brand poised for continued growth, and I look forward to helping ensure the business is effectively integrated to continue Boost’s success. Beyond this transition period, I will then be departing the business, with pride at what was achieved during my 8-year tenure leading Boost Mobile, including growing the business to a position that has enabled a successful sale for our shareholders.”
In 2012, Optus ended its business relationship with Boost, who then switched to the Telstra network.
In March 2013, Boost began to offer products and services under the Boost Pre-paid Mobile brand as an MVNO hosted on the Telstra Next G network.
Boost was the only Telstra MVNO with access to the full Telstra mobile network across regional/rural Australia.
On 30 May 2022, Boost began rolling out 5G service access to all customers with a compatible service and device.
Then in February 2024, Boost began provisioning eSIM through their mobile applications.
eSIM were made available for both existing and new Boost Mobile services on iOS and Android smartphones that supported eSIM functionality.
Peter Adderton the founder of Boost Mobile sold the US rights to the Boost brand to US carrier Nextel Communications.
The business was then acquired by Sprint Corporation and Boost Mobile became a subsidiary of the merged company, Sprint Nextel Corporation.
Currently Boost Mobile is sold at 10,000 retailers across Australia including Coles and Woolworths.
The only downside could be if JB Hi Fi sees the brand as a disrupter to the sale of other products they offer.
AFR sources said Telstra was advised by Gilbert + Tobin, while Boost used Allens and Miles Advisory.
Boost Media has more than 1 million users, which is a key metric on valuing businesses of its ilk.
As an example, rival Optus in 2020 paid $250 million for Amaysim which had 1.17 million customers.
Telstra’s last foray on the M&A circuit saw it pay $267.5 million for cloud specialist Versent in October 2023.
Updates to follow.
