September 17, 2014
DALLAS (AP) - AT&T says it will acquire Leap Wireless, the pre-paid cellphone carrier behind the Cricket brand, for $15 a share in cash, or about $1.19 billion.
Under the deal, AT&T will buy all of Leap's stock and wireless properties, including licenses, network, retail stores and 5 million subscribers.
Leap, of San Diego, had $2.8 billion of net debt.
AT&T says it will keep the Cricket brand name and provide Cricket customers with access to AT&T's "4G LTE" high-speed wireless network.
It also plans to expand Cricket's presence in the U.S.
Leap shares, which closed at $7.98, jumped 94 percent to $15 .52 in after-hours trading Friday.
Copyright 2014 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Viewers with disabilities can get assistance accessing this station's FCC Public Inspection File by contacting the station with the information listed below. Questions or concerns relating to the accessibility of the FCC's online public file system should be directed to the FCC at 888-225-5322, 888-835-5322 (TTY), or email@example.com.