Clearwire Corp. continues to insist that it is still considering the DISH Network Corp. counter bid to Sprint Nextel Inc.'s US$2.2 billion takeover offer but has now deigned to take its $80 million in agreed monthly funding from Sprint.
Clearwire revealed Wednesday that it has agreed to take March's draw from Sprint after passing on the funding in January and February following the unsolicited Dish counterbid. Clearwire said in a statement that a special committee from its board continues discussions with Dish and Sprint and "will pursue the course of action that it believes is in the best interests of Clearwire's non-Sprint Class A stockholders."
Why this matters
Relenting on the funding might be a sign that Clearwire is inching closer to closing the full-ownership deal with Sprint. Certainly Clearwire's current 4G LTE upgrade plans are symbiotically linked with its long-time partner, and Clearwire has said that it can't survive beyond the end of the year without funding from Sprint.
DanJones, User Rank: Blogger 3/1/2013 | 3:39:53 PM
re: Clearwire Inching Towards Sprint Deal? Seems like Clearwire is still trying to play a game of stock price chicken with Sprint to get them to up their offer. I wonder how long they can keep this up without putting the 4G rollout on ice?
Sprint is ready to connect 800+ Clearwire TD LTE sites to its network. As it stands this is the next actual revenue stream for Clearwire and if I recall correctly they have a usage-based deal for LTE as opposed to the fixed payments for WiMAX.
The quicker they get the LTE network up the quicker they start to get steady money again. This diversion doesn't seem to be in anybody's interests in the medium term.
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