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4G/3G/WiFi

Clearwire Gets Its Funding: $715.5M

Clearwire LLC (Nasdaq: CLWR) now has another $715.5 million to play with, having closed its previously announced stock sales on Tuesday.

The company netted $384.1 million through common-stock sales at $2 per share (shares closed at $2.15 Tuesday afternoon) and got another $331.4 million by selling Class B common stock to Sprint Corp. (NYSE: S).

The offering netted Clearwire a little over $30 million more than it had recently said it expected to pull in. Last Wednesday, the operator added an additional $52.5 million of stock to cover over-allotments from the original $300 million stock offering announced earlier in the week. Clearwire shares were holding flat in early after-hours trading Tuesday.

Why this matters
The numbers are somewhat higher than originally expected from Clearwire's offering. This funding, plus an additional $1.6 billion commitment from Sprint for four years of Long Term Evolution (LTE) and WiMax services, sets Clearwire up to go build its LTE network.

For more
The latest pieces of the Clearwire saga:

— Craig Matsumoto, West Coast Editor, Light Reading

digits 12/5/2012 | 4:46:32 PM
re: Clearwire Gets Its Funding: $715.5M

In 2015, what will financial and industry commentators say about these investments?


I suspect they will be regarded as somewhat misguided.

kaps 12/5/2012 | 4:46:28 PM
re: Clearwire Gets Its Funding: $715.5M

There might be more upside than you think. I'm not a financial guy but I do believe that the spectrum Clearwire holds is still undervalued in the company stock price. By keeping that spectrum viable and/or making it more attractive that increases the possible return on investment, no?


Not sure that financial industry types really understand spectrum. Haven't seen too many clear (hah) breakdowns of Clearwire from that bunch. Yet they control the investments. Scary, if you are trusting them with your dough.

kaps 12/5/2012 | 4:46:28 PM
re: Clearwire Gets Its Funding: $715.5M

There might be more upside than you think. I'm not a financial guy but I do believe that the spectrum Clearwire holds is still undervalued in the company stock price. By keeping that spectrum viable and/or making it more attractive that increases the possible return on investment, no?


Not sure that financial industry types really understand spectrum. Haven't seen too many clear (hah) breakdowns of Clearwire from that bunch. Yet they control the investments. Scary, if you are trusting them with your dough.

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