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SK Telecom is apparently negotiating terms with U.K.-based Virgin Mobile to bail out its U.S. subsidiary, Helio LLC. The Wall Street Journal on Monday reported that Helio and Virgin Mobile USA are pushing for a merger, and the Washington Post said there was talk of SK Telecom buying Virgin Mobile USA and injecting some cash, and Virgin Mobile USA then taking over the smaller Helio.
An SK Telecom official said nothing has been decided yet, but the two companies are ¡°seeking various ways that would be mutually beneficial.¡± ¡°What is certain is that SK Telecom will never give up on Helio, our foothold for business in the U.S.,¡± he added.
Helio, which was jointly set up by SK Telecom and EarthLink of the U.S. in 2006, has been struggling due to a less than satisfactory performance in securing subscribers, which remain at 180,000 at the moment, and an increase in marketing expenses. The company incurred a heavy loss of W340 billion (US$1=W1,043) as of the end of last year.
(englishnews@chosun.com )
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