FreedomPop Ignores Sale Rumors to Increase Funding Levels

The last few months have been a difficult time for executives at FreedomPop, the data based wireless communications provider that uses an app to allow users to convert data into text and talk time. Recode reports the company has been the subject of a number of bids from those looking to purchase or merge with the startup, which prompted CEO Stephen Stokols to make the difficult decision about seeking extra funding or selling the company. Eventually, the decision has come down on the side of increased investment as FreedomPop’s executives felt the timing for a sale was not yet right.

Instead of selling the mobile service provider a fresh round of investment has just been unveiled that sees FreedomPop source a further $30 million in investments from across Europe. The increase in European investments through Partech Ventures comes after FreedomPop also unveiled a partnership with the UK’s Three wireless provider to offer its services across the country. Stokols believes the decision to retain control of the company will see its value increase by three to four times the current valuation and prove the decision not to sell early was correct. The CEO also revealed he was influenced in his decision by the popular TV show Silicon Valley, in which a startup refuses to sell to a larger company early in the development process.

Read the full article at: http://recode.net/2015/06/17/freedompop-opts-not-to-sell-raises-30-million-instead/


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