Sprint Announces Clearwire Buyout at $2.97/Share
December 17, 2012 9:00 AM
comment(s) - last by
Sprint CEO Dan Hesse
Sprint buys Clearwire spectrum
Rumors were circulating late last week that Sprint and Clearwire were
close to a deal
that would see wireless carrier Sprint acquire all Clearwire shares that it didn't already own. Sprint has announced today that it has entered into an agreement that would see it acquire 100% ownership at $2.97 per share.
Sprint says that it is uniquely positioned to leverage Clearwire's 2.5 GHz spectrum assets. Sprint also believes that the purchase will strengthen its position and increase its competitiveness in the wireless industry within the U.S.
With all outstanding shares Sprint is purchasing, the deal values Clearwire at $2.2 billion. The transaction gives Clearwire a total enterprise value of about $10 billion including its net debt and spectrum lease obligations of $5.5 billion.
Sprint CEO Dan Hesse championed the move, stating, “Sprint is uniquely positioned to maximize the value of Clearwire’s spectrum and efficiently deploy it to increase Sprint’s network capacity. We believe this transaction, particularly when leveraged with our SoftBank relationship, is further validation of our strategy and allows Sprint to control its network destiny.”
This article is over a month old, voting and posting comments is disabled
RE: Not quite...
12/17/2012 10:29:41 AM
Splashing out to expand the footprint of their directly owned towers is something I wouldn't be surprised if Sprint decides to do. Given Sprint's current relatively weak position vs ATT/VZW, I doubt that taking over clearwire will be the end of Softbank's throwing it's money into the company to try and improve it's position.
Expanding the footprint of their network would really help the MVNO partners that are a relatively large fraction of Sprint's aggregate customer base and improve their standing in the national comparison maps the big two use to claim their superiority. Currently VZW isn't letting Sprint's MVNO's roam onto their 3g network; and I wouldn't hold my breath on them letting anyone else onto their LTE network for at least the next few years.
RE: Not quite...
12/17/2012 2:59:11 PM
You have to do your research with sprint and really know how much you'll be traveling around the country. Sprint is quite good in Chicago, but absolutely terrible in other big cities. Not only that but you have to research where in certain cities there is good coverage.
I'll still take unlimited data over data caps though. Absolutely no point with being on a super fast network and being capped to the bone.
RE: Not quite...
12/17/2012 3:28:33 PM
I have done my research and where I live Sprint's coverage is ~50% roaming onto VZW's network (by area covered). As a result my voice/3g coverage wouldn't be significantly affected by going to Sprint but unless they expand their footprint my LTE would probably be patchy until/unless VZW started allowing roaming access to it.
Sprint's unlimited data really doesn't matter to me; what I'd be more interested in would be going to one of their MVNO's that offer significantly cheaper plans for light users (probably Ting); but since VZW isn't currently letting any Sprint MVNO's roam onto their data network I'd frequently just have an over sized voice only phone when away from home.
"We can't expect users to use common sense. That would eliminate the need for all sorts of legislation, committees, oversight and lawyers." -- Christopher Jennings
Sources Claim Sprint, Clearwire Are Close to a Buyout Deal
December 12, 2012, 8:30 AM
BlackBerry Passport, Q5, and Z30 Go on Sale Till Dec. 30, Z30 is Nearly Sold Out
December 26, 2014, 4:04 PM
Despite Bump to $99/Year, Amazon Prime Attracts 10 Million New Customers
December 26, 2014, 3:08 PM
Qualcomm Snapdragon 810, New Gobi Modem Pass Cat. 9 LTE-A Test on UK's EE
December 25, 2014, 11:30 PM
Happy Holidays From DailyTech!!
December 24, 2014, 5:07 PM
Nokia's Sweet $250 Android Lollipop N1 Tablet is Rumored for Jan. 7 China Launch
December 24, 2014, 1:45 PM
Samsung Preps 4 GB LPDDR4 RAM to Power "4K" Smartphones in 2015
December 23, 2014, 10:38 AM
Most Popular Articles
Miyamoto: Nintendo is Prepping Successor to Troubled Wii U
December 22, 2014, 6:28 PM
Amazon's Kindle Fire HDX 8.9 Drops to $299 (30 Percent Off) for a Day
December 22, 2014, 10:57 AM
Android-Powered BLU Studio 7.0 Claims to be the "World's Largest Smartphone"
December 19, 2014, 2:40 PM
Airbus A350 XWB Passenger Jet Takes Off, First Unit Delivered to Qatar Airlines
December 22, 2014, 1:22 PM
Mississippi AG Drops Anti-Google Subpoena After Dirty MPAA Ties Are Revealed
December 22, 2014, 9:51 AM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information