Report: Virgin to Buy Helio

As expected, the Financial Times is reporting that Virgin Mobile USA will acquire struggling MVNO Helio (both are actually):
Virgin Mobile USA is to acquire the US mobile phone operation controlled by SK Telecom of South Korea, after each side decided to combine their struggling businesses to build scale in the fast-maturing market.

One person with knowledge of the matter said that the sides had agreed a deal in principle and that an announcement could be made as early as this week.

SK Telecom yesterday declined to comment.

The agreement will see Helio, the US mobile business of SK Telecom, injected into Virgin Mobile USA. The better-recognised Virgin brand will be retained.

In return, Virgin Mobile, which listed in New York last October, will issue new shares, leaving SK Telecom holding close to 20 per cent of the equity of the enlarged business, which will be worth about $50m.
Accordingly, the Helio brand will disappear.