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Clearwire's (CLWR +0.5%) board plans to endorse Dish's (DISH -3.9%) $4.40/share tender offer and...

Clearwire's (CLWR +0.5%) board plans to endorse Dish's (DISH -3.9%) $4.40/share tender offer and postpone a Thursday shareholder vote on majority owner Sprint's (S -0.1%) $3.40/share buyout offer, the WSJ reports. The reports comes two days after Sprint gave its support to SoftBank's (SFTBF.PK) revised offer for the company, and set a June 18 deadline for Dish to make its final offer. Sprint and Dish have been arguing over the legality (I, II) of Dish's bid for Clearwire. (previous)
Comments (1)
  • Joshua007
    , contributor
    Comments (36) | Send Message
     
    As long as sprint still has clearwire, I see no problem letting Dish purchase a strategic amount of shares and help fund the LTE roll-out. Dish wants different things out of their purposed LTE network, as they want to have streaming video from their satellite service available everywhere. Clearwire can host this spectrum and provide extra capacity where needed, while still helping sprint offload capacity at the same time.
    That being said, I would still rather sprint buy clearwire outright as they would be much more aggressive with their plans for the spectrum if they did not have to pay usage-based rates, which will limit clearwire's use for now.
    But if this allows sprint to bid on the 600Mhz spectrum without government involvement, it may be a blessing in disguise. Sprint could always buy clearwire outright at a later date, but they will almost certainly pay much more for the company... In this way, matching dish may be the best option. (or bidding dish up and sprint cashing out and purchasing more spectrum elsewhere!)
    13 Jun 2013, 01:16 PM Reply Like
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