Sprint Wants to Buy Clearwire Outright for $2.1B
Sprint Corp. (NYSE: S) confirmed Thursday that it is offering $2.1 billion to buy its WiMax provider -- Clearwire LLC (Nasdaq: CLWR) -- outright to gain control of another big slice of nationwide 4G spectrum.
Sprint has confirmed through a Securities and Exchange Commission (SEC) filing that it wants to buy the remaining 49 percent stake it doesn't already own for $2.90 a share. Sprint is also proposing interim financing of up to $800 million to Clearwire through the deal.
Clearwire says in its own filing that it's reviewing the offer but "does not comment on ongoing negotiations with counterparties and ... [and] continues to be in discussions with Sprint to explore a transaction."
Clearwire's shares closed at $2.75 on Wednesday and are up by more than 10.55 percent at $3.04 in pre-market trading Thursday.
Why this matters Bolstered by the prospect of its own $20 billion deal with Japan's SoftBank Mobile Corp. , Sprint is finally trying to take full control of Clearwire's massive 2.5GHz-2.6GHz spectrum holdings in the U.S.
Clearwire says it has an average holding of 160MHz in the top 100 U.S. markets.
The only hitch is that a Clearwire acquisition may slow the passage of the Softbank investment.
- Sprint in Talks to Take Over Clearwire?
- Sprint Buys Back Controlling Stake in Clearwire
- Softbank to Pay $20B for 70% Sprint Stake
- Clearwire Targets 31 Cities for LTE TDD
- Clearwire Still Looks to Sprint for Funding
— Dan Jones, Site Editor, Light Reading Mobile