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
-ŠWCS 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.-Š
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.-Š
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.-Š But they did put on a good show.-ŠI'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.-Š Their Blockbuster buy hasn't really moved the needle from what I can tell.-Š They may have come to the realization that they can't change and grow on their own... though this little Clearwire stunt-Šisn't exactly the way to get friendlier with Sprint, if a partnership is its goal.-Š But that's Charlie...he'll smack you with one hand and try to shake hands with the other.-ŠJB
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
-ŠI'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. -Š1) No one would break a deal over 25 cents. -Š 2) His intention is to canibalize clearwire and that is not what is Sprint planning on doing with Clearwire. -ŠThis is the same thing he tried to do with Sirius. He wanted to trip the company into bankruptcy and get the-Šsatellites. -ŠI recall he-Šlost so badly to Malone,-ŠErgen 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
LRTV Huawei Video Resource Center
Sales Director of INIT on Plug & Play Switch Devices

9|19|14   |   3:21   |   (0) comments


INIT Italy uses both the Huawei S5700 and S7700 series switches for the campus LAN environment. Sales Director Andrea Curti says their company chose these Huawei devices over others because of their performance, flexible scalability and plug-and-play features.
LRTV Huawei Video Resource Center
Saudi Arabia Upgrades Vocational Training System

9|19|14   |   3:31   |   (0) comments


The Technical and Vocational Training Corporation (TVTC) has 100,000 students, 150 government-owned institutions and oversees 1000 private institutes. The CIO of TVTC explains that Huawei devices have allowed them to manage multiple datacenters using just one software program, scientifically tracking the progress of students and teachers, saving them millions.
LRTV Huawei Video Resource Center
Huawei's Media Solutions Are Here to Stay

9|19|14   |   4:35   |   (0) comments


The current media revolution requires rapid upgrades in technology. New formats (HD, 3D, 4K etc.) and the subsequent explosion of file sizes demand sophisticated network and storage architecture. Social media and the multiple distribution channels require a robust asset management system. Gartner analyst Venecia Liu speaks about the current technological trends in ...
LRTV Huawei Video Resource Center
Microgenesis on Huawei's Switches

9|19|14   |   3:57   |   (0) comments


Microgenesis is a solutions and system integrator company in the Philippines whose areas of expertise include data centers, networking and security products. In this video, Executive Director Jeffrey Choa talks to us about his customers needs and they benefit from using Huawei switches.
LRTV Huawei Video Resource Center
Network Solutions Help the Philippines Jump Ahead

9|17|14   |   2:59   |   (0) comments


In the past, the Philippines has under-invested in technology. Now, the CEO of Softshell talks about how Huawei products help the Philippines jump ahead as the economy improves.
LRTV Huawei Video Resource Center
VCS Observation for Safer Cities in the Netherlands

9|17|14   |   5:20   |   (0) comments


Holland's VCS Observation has been operating for 22 years. Its main goal is to get cities safer. CEO Wim van Deijzen tells us some of the challenges his company faces and how Huawei is helping to overcome these challenges.
LRTV Huawei Video Resource Center
A Conversation With Serbia's Ministry of Interior

9|17|14   |   4:38   |   (0) comments


At HCC 2014, the Assistant Minister of the Ministry of Interior of the Republic of Serbia talks to us about his projects and corporation with Huawei. Solutions like Safe City and E-Government and services like cloud computing are just some of the areas his department is interested in.
LRTV Huawei Video Resource Center
IHS Analyst Discusses eLTE at CCW 2014

9|10|14   |   7:09   |   (0) comments


Thomas Lynch, associate director of critical communications at IHS Technology, talks about broadband in critical communications.
LRTV Huawei Video Resource Center
TCAA on Huawei eLTE: A Broadband Solution for Mission-Critical Communications

9|10|14   |   2:29   |   (0) comments


At CCW2014 in Singapore, the TCCA's Phil Kidner talks about the importance of broadband data for critical communications.
LRTV Custom TV
Spotlight on Cisco: SDN for Optical Networks

9|8|14   |   9:27   |   (0) comments


Cisco's Greg Nehib talks OpenFlow and more on the 'Software-Defined Networking for Optical Networks' panel at the Big Telecom Event in June 2014.
LRTV Custom TV
Cisco's Evolved Programmable Network (EPN)

9|8|14   |   4:05   |   (0) comments


A look at the various demos Cisco showed at Light Reading's Big Telecom Event highlighting Cisco's EPN innovation and how SDN and NFV technologies are enabling a variety of new services.
LRTV Huawei Video Resource Center
The Future of Ultra-Broadband, With Kevin Kelly (UBBF2014)

9|5|14   |   1:13   |   (1) comment


If you think the technological changes we've seen up to now are astounding, just wait until you see what the future has in store. Discuss upcoming breakthroughs with Kevin Kelly, Founding Executive Editor of Wired Magazine, at the Huawei Ultra-Broadband Forum on September 24.
Upcoming Live Events!!
September 23, 2014, Denver, CO
October 29, 2014, New York City
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
June 9-10, 2015, Chicago, IL
Infographics
A survey conducted by Vasona Networks suggests that 72% of mobile users expect good performance all the time, and they'll blame the network operator when it's not up to par.
Today's Cartoon
Vacation Special Caption Competition Click Here
Latest Comment
Hot Topics
AT&T: We'll Bundle Fixed Wireless & DirecTV
Mari Silbey, Independent Technology Editor, 9/15/2014
New NFV Forum Focused on Interoperability
Carol Wilson, Editor-at-large, 9/16/2014
NFV & The Data Center: Top 10 Takeaways
Sarah Reedy, Senior Editor, 9/18/2014
Connecticut Cities Crowdsource Gigabit Nets
Jason Meyers, Senior Editor, Utility Communications/IoT, 9/15/2014
Pics: LR's Women in Telecom Breakfast
Sarah Reedy, Senior Editor, 9/16/2014
Like Us on Facebook
Twitter Feed