• Market Watch, Tuesday, July 28, 2009 1:02 PM

Enabling cash-strapped consumers to Tweet away without the worry of long-term contracts, Sprint Nextel Corp. has agreed to acquire Virgin Mobile USA Inc. for about $483 million. Sprint will keep the Virgin Mobile name, while its chief executive, Dan Schulman, will continue to run the pre-paid business.

The wireless company has struggled to keep its more lucrative contract subscribers, while hedging its bets with its Boost Mobile unit, which provides a cheaper service without contracts. Boost's $50 all-inclusive flat-rate plan launched early this year was reported very successful.

Boost President Matt Carter will report to Schulman. Ideally, the companies will save costs through shared back office, distribution, marketing and network costs. Virgin Mobile currently buys and resells minutes off of Sprint's network.

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