Virgin Mobile USA (NYSE: VM) confirmed this morning that it is having preliminary discussions with SK Telecom (NYSE: SKM) to explore possible strategic opportunities. We were first last week to report that the two companies may be in discussions, and that in one scenario, we heard SK Telecom was looking to buy Virgin and then give it enough cash to buy Helio—the youth-oriented MVNO co-owned by SK Telecom and EarthLink. Virgin has repeatedly declined to talk about any ongoing negotiations, but said today the discussions are in early stages and there are no assurances that any transaction will result. On Saturday, SK Telecom even went as far as saying that it was not in “any sort of talks” with Virgin and that the rumors were “groundless.” SK Telecom also said it remained “committed” to the struggling Helio. Release.

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Virgin Mobile USA said they will not comment further comment unless a definitive agreement is reached. In morning trading, the stock is up 93 cents, or about 30 percent, to just below $4 a share.