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Summary:

Virgin Mobile USA (NYSE: VM) confirmed this morning that it is having preliminary discussions with SK Telecom (NYSE: SKM) to explore possibl…

Virgin Mobile USA (NYSE: VM) confirmed this morning that it is having preliminary discussions with SK Telecom (NYSE: SKM) to explore possible strategic opportunities. We were first last week to report that the two companies may be in discussions, and that in one scenario, we heard SK Telecom was looking to buy Virgin and then give it enough cash to buy Helio — the youth-oriented MVNO co-owned by SK Telecom and EarthLink. Virgin has repeatedly declined to talk about any ongoing negotiations, but said today the discussions are in early stages and there are no assurances that any transaction will result. On Saturday, SK Telecom even went as far as saying that it was not in

  1. Hmmm sk lying about talks with virgin, how unsuprising does that sound to me, kinna reminds me of ampd mobile when they said Chapter 11 bankruptcy was to restructure the company and executive board, but did that ever happen?

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  2. If anyone from Virgin Mobile is reading this I have two bits of advice for you.

    1. Wait a few more months and buy Helio’s assets out of bankruptcy court. A small private equity firm got the assets of AMP’d Mobile at a bargain basement price when they went belly up. Sure, the guys at SK Telecom say “they will never give up on Helio” but shareholders will always cut off the feeding tube of a bloated, cash burning subsidiary.
    2. If you do wind up acquiring Helio, please fire their marketing team and don’t resort to cheap marketing gimmicks to snare customers.

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