Light Reading
Dish tries to outbid Sprint with deal to buy a stake of at least 25% of Clearwire alongside a $2.2B offer for a tranche of the operator's 2.6GHz spectrum

Dish Puts In Rival Bid for Clearwire

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor
1/8/2013
50%
50%

Dish Network Corp. is offering $2.2 billion for a slice of Clearwire's spectrum as it tries to outbid Sprint Nextel Inc. and nab a 25 percent-or-greater stake in Clearwire.

Dish has made the unsolicited bid of $3.30 a share for the outstanding shares in Clearwire on Tuesday evening. In December, Sprint made a bid of $2.97 to get control of the 49 percent of the company that it doesn't already own. The Dish bid comes with a number of conditions:

  • Dish must get 25 percent or more or the outstanding shares as part of the transaction
  • Dish gets to nominate board members
  • Dish will pay $2.2 billion for about 24 percent of Clearwire's spectrum in the U.S.
  • Clearwire would work with Dish to build and run a commercial network
  • Dish wants Clearwire to terminate its financing agreement with Sprint
Clearwire said in a statement that a special committee on its board "has determined that its fiduciary duties require it to engage with Dish" to discuss the offer, but that it hasn't so far changed its recommendation of the current Sprint transaction. The statement reveals that Dish had already approached Clearwire with a spectrum offer before the Sprint bid. Clearwire has revoked its initial draw on the Sprint financing because of the decision to examine the Dish bid, and so has not received the first $80 million under the agreement. Clearwire also says that it has received a letter from its 4G partner, Sprint, describing the Dish proposal as "illusory" and "inferior" to the Sprint bid. Sprint also stated that the Sprint agreement would prohibit Clearwire from entering into agreements for much of the Dish proposal. Clearwire said it has given no timetable for the resolution of the matter of the dueling bids and will not comment further about the proposed deals. — Dan Jones, Site Editor, Light Reading Mobile

(8)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
year2525
50%
50%
year2525,
User Rank: Light Beer
1/11/2013 | 5:13:47 PM
re: Dish Puts In Rival Bid for Clearwire
-áWCS could make some sense for a home broadband service but AT&T seems intent on locking that down.
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
1/11/2013 | 2:37:22 PM
re: Dish Puts In Rival Bid for Clearwire
Good guesses all around. I'm actually going to bet that there's method to Charlie's madness. Despite how this Clearwire fiasco may turn out, I think Dish recognizes that the long-term viability of satellite TV is in jeopardy and they need a wireless broadband component to complement it in the near term and maybe even supplant it in the long term.-á
I don't know what the best spectrum would be to serve their video purposes but perhaps they're trying to do some horse trading to find the right fit.-á
Jeff Baumgartner
50%
50%
Jeff Baumgartner,
User Rank: Light Beer
1/10/2013 | 3:13:12 PM
re: Dish Puts In Rival Bid for Clearwire
I still think that the notion that Dish would build a wireless service on its own was a huge bluff, no matter how the FCC rules surrounding his AWS spectrum shook out.-á But they did put on a good show.-áI'm not sure what his ultimate end-game is, but it's quite clear that Dish and Ergen know they have to reinvent the company now that their video biz is slowing down.-á Their Blockbuster buy hasn't really moved the needle from what I can tell.-á They may have come to the realization that they can't change and grow on their own... though this little Clearwire stunt-áisn't exactly the way to get friendlier with Sprint, if a partnership is its goal.-á But that's Charlie...he'll smack you with one hand and try to shake hands with the other.-áJB
joanengebretson
50%
50%
joanengebretson,
User Rank: Light Beer
1/10/2013 | 2:23:05 PM
re: Dish Puts In Rival Bid for Clearwire
I suspect Dish is looking to get more spectrum since the FCC put restrictions on how much of their spectrum they can use terrestrially. And it's not surprising that they're looking for someone to help them build their network. Seems like that's a chunk of business Sprint would like to see Clearwire get in any case.
year2525
50%
50%
year2525,
User Rank: Light Beer
1/10/2013 | 1:40:28 PM
re: Dish Puts In Rival Bid for Clearwire
-áI'm honestly not quite sure. Spectrum grab would be most logical to me.
craigleddy
50%
50%
craigleddy,
User Rank: Blogger
1/9/2013 | 6:22:35 PM
re: Dish Puts In Rival Bid for Clearwire
So what's Charlie's end game here? Is Dish serious about starting a wireless service, perhaps as a complementary service or even an eventual replacement for satellite TV service? Or is this just a chess game to make money off of spectrum?

What's going on inside Charlie's head? Oh sorry, nobody has the answer to that last question!
chuckj
50%
50%
chuckj,
User Rank: Light Sabre
1/9/2013 | 1:25:55 AM
re: Dish Puts In Rival Bid for Clearwire
Ergen is so cheap. -á1) No one would break a deal over 25 cents. -á 2) His intention is to canibalize clearwire and that is not what is Sprint planning on doing with Clearwire. -áThis is the same thing he tried to do with Sirius. He wanted to trip the company into bankruptcy and get the-ásatellites. -áI recall he-álost so badly to Malone,-áErgen got a couple of hundered million and Malone got half of Sirius XM just for a bridge loan to pay off Ergen.
year2525
50%
50%
year2525,
User Rank: Light Beer
1/9/2013 | 12:01:33 AM
re: Dish Puts In Rival Bid for Clearwire
This is another, er, interesting move by Dish. They can't get a controlling stake in CLWR because Sprint already has it. Wonder if its a way to get more spectrum at a reasonable price?
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
Jonestown
Mobile Backhaul: Going to the Dark Side?

10|30|14   |   2:26   |   (1) comment


Heavy Reading's Patrick Donegan shares his view on a dark trend that bubbled up at Light Reading's annual backhaul conference in NYC.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With CEO of SwitchCom

10|30|14   |   4:13   |   (0) comments


SwitchCom, an IT company based in Angola, recommends a variety of Huawei solutions and hardware to their customers in the energy industry.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Ethiopia's Ministry of Water Irrigation & Energy

10|30|14   |   4:08   |   (0) comments


Gosaye Mengistie of Ethiopia's Ministry of Water Irrigation & Energy discusses the collaboration with Huawei in that country.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Dongfang Electronics Corporation

10|30|14   |   5:46   |   (0) comments


Dongfang Electronics Corporation, headquartered in Chengdu, China, is one of China's largest manufacturers of power generators and contractors of power station projects.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview with Zimbabwe's Customers

10|30|14   |   3:31   |   (0) comments


Representatives of Zimbabwe's Ministry of Power and Development discuss the energy needs of their country as well as new areas of improvement due to enhanced ICT capabilities.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Colbún Chile

10|30|14   |   4:29   |   (0) comments


In Chile, an aging energy infrastructure was in dire need of a modern update. Claudio Valenzuela of Colbún discusses how Huawei's ICT solutions continue to provide crucial information to improve the grid and how an in-country engineer is a cricial asset.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With YuLiao

10|30|14   |   6:27   |   (0) comments


Yu Liao, chairman of the Chinese Association for Renewable Energy in Germany, discusses the role that ICT solutions play in helping to grow renewable energy resources in Germany.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview

10|30|14   |   2:54   |   (0) comments


Sifang has been working with Huawei on several projects. JingTao Wu, Assistant President of Beijing Sifang Automation Co. Ltd., believes that the cooperation with Huawei can facilitate Sifang's process of internationalization.
LRTV Huawei Video Resource Center
A Better Connected Smart Grid: Powering Laos

10|30|14   |   5:38   |   (0) comments


Representatives of Electricite Du Laos (EDL), a state-owned corporation, discuss the importance of ICT solutions in serving their country's energy needs.
LRTV Huawei Video Resource Center
2014 Huawei Electric Power Industry Summit: Interview With Junwei Lu

10|30|14   |   4:50   |   (0) comments


Professor Junwei Lu of Griffith University Australia describes his work with micro grid technology and the future of the power industry.
LRTV Documentaries
The Next-Gen Network Disconnect

10|29|14   |   01:23   |   (2) comments


There's a lot of talk about making networks more simple with SDN, NFV and next-gen broadband technology – but what about the complexity of introducing such capabilities?
LRTV Custom TV
Grow Your VPN Service Revenue

10|27|14   |   4:00   |   (0) comments


Watch how CSP product managers can better differentiate and maximize the value of their Internet, VPN and cloud services for business services customers, by adding premium application performance visibility to their data services.
Upcoming Live Events
November 6, 2014, Santa Clara
November 11, 2014, Atlanta, GA
December 2, 2014, New York City
December 3, 2014, New York City
December 9-10, 2014, Reykjavik, Iceland
February 10, 2015, Atlanta, GA
May 6, 2015, McCormick Convention Center, Chicago, IL
May 30, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
Infographics
WhoIsHostingThis.com presents six of the world's most extreme WiFi hotspots, enabling the most epic selfies you can imagine.
Hot Topics
Microsoft's Skype Embraces WebRTC on IE
Sarah Reedy, Senior Editor, 10/27/2014
FTC Slaps AT&T With Throttling Lawsuit
Sarah Reedy, Senior Editor, 10/28/2014
Wheeler Gets Down With OTT
Mari Silbey, Independent Technology Editor, 10/29/2014
China's MVNOs Hit the Wall
Robert Clark, 10/27/2014
Let's Not Kill SDN & NFV With Silos
Francois Locoh-Donou, Senior VP, Global Products Group, Ciena, 10/28/2014
Like Us on Facebook
Twitter Feed