JetBlue Airways on Thursday agreed to buy Spirit Airlines for $3.8 billion shortly after Spirit scrapped its proposed merger with Frontier Airlines, CNBC and The Wall Street Journal.
Spirit on Wednesday called off the Frontier deal moments before it was set to announce the results of a shareholder vote on it. The discount carrier delayed the vote several times, hoping to get shareholders to support it over JetBlue's more lucrative proposal. Based on Wednesday's closing stock price, Frontier's cash-and-stock deal was worth $2.8 billion.
JetBlue's acquisition of Spirit would create the nation's fifth largest airline, making it better able to compete with bigger rivals American, Delta, Southwest, and United. The deal could face challenges from antitrust regulators.
The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
-
August 30 editorial cartoonsCartoons Saturday’s political cartoons include Volodymyr Zelenskyy and Donald Trump's role reversal and King George III
-
5 bullseye cartoons about the reasons for mass shootingsCartoons Artists take on gun worship, a price paid, and more
-
Lisa Cook and Trump's battle for control the US FedTalking Point The president's attempts to fire one of the Federal Reserve's seven governor is represents 'a stunning escalation' of his attacks on the US central bank
-
Why are global postal services cutting off package delivery to the US?Today's Big Question 'Uncertainty' around new tariff rules halts small-dollar imports
-
New York court tosses Trump's $500M fraud fineSpeed Read A divided appeals court threw out a hefty penalty against President Trump for fraudulently inflating his wealth
-
Trump said to seek government stake in IntelSpeed Read The president and Intel CEO Lip-Bu Tan reportedly discussed the proposal at a recent meeting
-
US to take 15% cut of AI chip sales to ChinaSpeed Read Nvidia and AMD will pay the Trump administration 15% of their revenue from selling artificial intelligence chips to China
-
NFL gets ESPN stake in deal with DisneySpeed Read The deal gives the NFL a 10% stake in Disney's ESPN sports empire and gives ESPN ownership of NFL Network
-
Samsung to make Tesla chips in $16.5B dealSpeed Read Tesla has signed a deal to get its next-generation chips from Samsung
-
FCC greenlights $8B Paramount-Skydance mergerSpeed Read The Federal Communications Commission will allow Paramount to merge with the Hollywood studio Skydance
-
A potential railway megamerger raises monopoly questionsThe Explainer Union Pacific and Norfolk Southern would create the country's largest railway operator
