Sprint on Tuesday announced that it has completed its acquisition of wireless wholesaler Clearwire. The FCC approved the merger last week and Clearwire shareholders voted in favor of Sprint’s offer of $5 per share on Monday. The acquisition of Clearwire will help Sprint, and new owner SoftBank, offer faster downloads speeds in more locations throughout the United States. It will also help the company better compete with AT&T and Verizon, while fending off increased competition from T-Mobile and its newly acquired MetroPCS. Sprint’s press release follows below. More →
The U.S. Federal Communications Commission on Friday approved SoftBank’s acquisition of Sprint. The agency also gave Sprint the green light to purchase the remaining 49% of Clearwire it did not already own. Sprint shareholders previously approved SoftBank’s offer of $21.6 billion in cash and stock for an 80% stake in the company. The carrier’s deal to acquire the rest of Clearwire will give current Clearwire shareholders $5 per share and will value the company at approximately $14 billion. Clearwire shareholders are scheduled to vote on Sprint’s proposal on July 8th, and Sprint said it believes both transactions will close later this month. The company’s press release follows below. More →
Clearwire on Thursday announced that its board of directors is recommending that shareholders vote in favor of Sprint’s recently revised takeover bid. The board’s advisement is based on the unanimous recommendation of a special committee of independent directors assembled to review Sprint’s offer. The deal would see Sprint pay Clearwire shareholders $5 per share for the remaining 50% of Clearwire stock that Sprint does not already own, and would value Clearwire at approximately $14 billion. Clearwire’s press release follows below. More →
Dish on Wednesday increased its bid to acquire wireless broadband wholesaler Clearwire. The company is now offering $4.40 per share, a 29% premium over Sprint’s proposal, which values the firm at $6.47 billion. Sprint recently raised its offer to $3.40 per share after shareholders had criticized its original proposal of $2.97 per share. Dish, whose offer comes two days before Clearwire shareholders are scheduled to vote on Sprint’s proposal, is also locked in a battle with Japanese company SoftBank to acquire Sprint.
Clearwire’s Board of Directors has approved a revised offer from Sprint to acquire a remaining 50% stake in the company. Sprint had previously offered $2.97 per share, or $2.2 billion, for the wireless broadband wholesaler. After several shareholders voiced their concerns about the sale, Sprint decided to raise its offer to $3.40 per share. The revised bid valued Clearwire at $10.7 billion and represented a 14% premium over the original bid. The board is recommending shareholders vote in favor of the acquisition when they meet on May 31st. Clearwire’s press release follows below. More →
Sprint on Tuesday announced a revised offer for wireless broadband wholesaler Clearwire. The carrier is looking to acquire the remaining Clearwire shares it does not already own for $2.97 per share, or $2.2 billion, valuing the company at $10 billion. Sprint has now increased its bid $3.40 per share, upping Clearwire’s value to $10.7 billion. The revised offer represents a 14% premium over the company’s earlier bid and a 162% premium over Clearwire’s closing share price in October when it was rumored to be part of the Sprint-SoftBank merger discussions. Sprint notes that the offer is the best and final offer it will propose. The company’s press release follows below. More →
Clearwire disclosed in a securities filing on Friday that it had received an offer from an unnamed company for use of its spectrum. According to The Wall Street Journal, Verizon is behind the proposed deal and has offered $1.5 billion to lease Clearwire’s spectrum. Verizon is said to be interested in Clearwire spectrum in big markets to help it bolster its 4G LTE service. The carrier is expected to face a few obstacles, however. Wireless rival Sprint has a controlling stake in Clearwire and recently proposed a takeover of the company, while at the same time Sprint is in the middle of dealing with its own merger offers from Japanese carrier SoftBank and from Dish Network. Clearwire, Sprint and Verizon, nevertheless, will come together to evaluate the offer and discuss it in further detail.
A top Clearwire (CLWR) shareholder is waging a proxy war in an effort to stop Sprint’s proposed takeover of the troubled wireless provider, AllThingsD reported. Sprint (S) is looking to acquire Clearwire for $2.97 per share, however Crest Financial, Clearwire’s largest minority shareholder, believes the offer undervalues the company and its spectrum. The Houston-based investment company hired a proxy solicitation firm last month to help it fight the deal, and also sued Clearwire and its board for breaching their fiduciary duties. More →
Although Sprint (S) CEO Dan Hesse has in the past fought against consolidation of spectrum holdings in the wireless industry, he’s not nearly as concerned when it’s his own company doing the consolidating. As Quartz points out, Sprint is now poised to dominate mobile data spectrum holdings in the United States with its plan to fully acquire wireless broadband wholesaler Clearwire (CLWR). More →
In line with earlier reports, Sprint (S) on Monday announced plans to acquire the remaining stake it did not already own in wireless broadband wholesaler Clearwire (CLWR). Sprint’s offer came in just north of earlier reports claiming the company would bid $2.90 per share, or $2.1 billion, which would value Clearwire at $4.2 billion. Sprint’s final bid came in at $2.97 per share, or $2.2 billion, and it pushes Clearwire’s valuation to $4.5 billion plus another $5.5 billion of net debt and spectrum lease obligations. The deal is subject to regulatory approval and to shareholder approval, and is expected to close next year. Sprint’s full press release follows below. More →
Sprint (S) is reportedly in talks to acquire the remaining stake in Clearwire (CLWR), according to CNBC. While a deal isn’t believed to be imminent, the two companies are involved in “active negotiations” and could announce an agreement before the end of the year. Sprint already owns a 50.8% stake in Clearwire and has long been rumored to be interested in a full acquisition of the company. CNBC’s sources note, however, that a potential deal is still “fraught with difficulty” due to the complexity of their relationship and Sprint’s pending deal to sell a majority stake to SoftBank. Shares of Clearwire reacted positively to the news, jumping nearly 15% to $2.75 per share.
With Softbank (SFTBY) acquiring a 70% stake in Sprint (S), it was speculated by Bloomberg that the latter would be unlikely to push on with its efforts to buy a controlling stake in Clearwire (CLWR). Reuters is now reporting that Sprint has “acquired control of Clearwire Corp after buying out one of the company’s other shareholders,” however. Sprint will purchase 31 million Class A shares and approximately 2.7 million Class B shares from Eagle River Holdings to boost the carrier’s total stake in Clearwire to a controlling 50.8%.
One of the predicted benefits of the Softbank (SFTBY)-Sprint (S) merger is that Sprint will now have enough cash on hand to buy up Clearwire (CLWR), the troubled wireless company that has partnered with Sprint in the past and that has valuable spectrum that Sprint can use for its LTE network. But unnamed sources have told Bloomberg that such a merger is unlikely to happen in the foreseeable future because Sprint and Softbank have made it clear that their “priority is to close the deal” that they announced this week, which Bloomberg says “will take six to eight months.” Bloomberg’s sources also said that Sprint already has enough spectrum for its LTE network and that buying Clearwire would be too expensive. More →