The Spirit Airlines Acquisition Has Taken an Unexpectedly Hostile Turn JetBlue is appealing directly to shareholders.

By Amanda Breen

entrepreneur daily

Back in February, Frontier Airlines announced that it was buying fellow ultra-low-cost carrier Spirit Airlines in a $2.9 billion cash-and-stock deal. But Frontier's hopes for a straightforward acquisition were dashed a couple of months later, when JetBlue made an unsoliticed $3.6 billion all-cash offer to acquire Spirit if it backed out of the merger with Frontier.

But Spirit is holding out for the Frontier deal.

Now, JetBlue is going directly to Spirit's shareholders, CNN reports, trying to convince them to vote against the Frontier deal as it presents an all-cash offer of $30 per share. JetBlue said in a statement on Monday that it was offering a "60% premium to the value of the Frontier transaction," adding that it's willing to negotiate if Spirit discloses more information about its business.

Related: Flight Prices Hit Record High and Raise Red Flags for Summer Travel

Frontier's January offer valued each Spirit share at $25.83.

Spirit is citing antimonopoly regulation as a major barrier in the finalization of a deal with JetBlue. Spirit rejected JetBlue's $33-a-share cash offer on May 2, saying that in light of the "substantial completion risk, we believe JetBlue's economic offer is illusory."

If the Frontier-Spirit merger came to pass, the new carrier would surpass JetBlue in size and customer base — becoming the country's fifth-largest carrier.

JetBlue Airways Corporation is down nearly 24% month over month while Frontier Communications Parent Inc has dipped nearly 20% during that same period.

Related: Passengers Furious After Southwest Airlines Leaves Thousands Stranded

Amanda Breen

Entrepreneur Staff

Features Writer

Amanda Breen is a features writer at She is a graduate of Barnard College and received an MFA in writing at Columbia University, where she was a news fellow for the School of the Arts.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Related Topics

Starting a Business

This Retiree's Leisurely Side Hustle Makes $66,000 a Year and, 'You Don't Even Need to Go to High School to Do It'

Barbara Hill wanted a flexible, part-time job that would transition well into retirement. Now she mentors younger people who are making over $200,000 a year. Here's her insider's guide to getting started.


6 Habits That Help Successful People Maximize Their Time

There aren't enough hours in the day, but these tips will make them feel slightly more productive.

Business News

HP Wants You to 'Never Own A Printer Again,' Launches Rental Subscription

In February, HP's CEO Enrique Lores stated that making printing a subscription service was the company's "long-term objective."

Growing a Business

How Tech Companies Can Harness the Power of Non-Verbal Communication for Enhanced Efficiency

Soft communication is more important for modern businesses than ever before. Here's why.

Business News

Jeff Bezos, Microsoft, and Nvidia All Decided To Invest in a $2.6 Billion Humanoid Robot Startup

Robotics startup Figure AI wants to help industries "where labor shortages are the most severe."