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Clearwire (CLWR) officially endorses Dish's (DISH) $4.40/share tender offer, calling it in the...

Clearwire (CLWR) officially endorses Dish's (DISH) $4.40/share tender offer, calling it in the "best interest of Class A stockholders." Clearwire's special committee now unanimously opposes Sprint's (S) $3.40/share buyout offer, and the company has rescheduled a shareholder vote on the Sprint deal set for Thursday to June 24. Dish's offer, which is subject to 25% of Clearwire shares being tendered, is now good until July 2. Even if Sprint's merger with SoftBank (SFTBF.PK) goes through, Dish's possession of a large minority stake in Clearwire gives it leverage to strike a favorable 4G network deal. (WSJ report)
Comments (9)
  • Deja Vu
    , contributor
    Comments (1277) | Send Message
     
    Prediction - DISH will lose the bid for Sprint, wind up owning a bunch of CLWR, and eventually sell it for a big loss.
    12 Jun 2013, 10:21 PM Reply Like
  • Good Captain
    , contributor
    Comments (456) | Send Message
     
    Sprint still retains a majority stake in CLWR and will remain as CLWR's largest debt holder, if I recall correctly, giving them a significant position of "control" if CLWR goes bankrupt. So this represents a clear setback for Sprint's plans but if this vote goes on as currently anticipated and Dish wins, the real dance begins.

     

    How will it end, I don't know but I assume Dish will either attempt to create some meaningful partnership w/ Sprint/SoftBank which I suspect will be difficult to pull off, given the struggle b/n SB & Dish over Sprint; or Dish will seek eventual breakup to accumulate yet another large swath of spectrum for something. Will Sprint/SB eventually play along? I suspect they will resist and attempt to bear out your prediction to "waste" Dish's efforts. That said, I further suspect Dish is prepared to use all means available to it to make this successful for their own purposes.
    13 Jun 2013, 11:36 AM Reply Like
  • zanajohn1
    , contributor
    Comments (76) | Send Message
     
    Softbank takes Sprint; DISH takes CLWR. Sprint pays up for the gas.
    12 Jun 2013, 11:02 PM Reply Like
  • ryanissamson
    , contributor
    Comments (2) | Send Message
     
    So... how about a Sprint/SoftBank counteroffer?
    13 Jun 2013, 01:54 AM Reply Like
  • Dave"T"
    , contributor
    Comments (31) | Send Message
     
    How about this, Softbank/ Sprint goes through, Clearwire / Dish goes through. Sprint calls in Clearwire's debt, sells off it's 51%holding in Clearwire, leaving Clearwire / Dish with more of a debt load than Charlie has already pushed it's merger into.
    Now Sprint has more cash to complete the upgrade, and expansion of it's system. It takes longer than a Sprint / Clearwire deal would have. Sprint has almost completed the decommissioning of the Nextel platform, which has helped Sprint move closer to a profit plus position.
    13 Jun 2013, 09:32 AM Reply Like
  • oldfart
    , contributor
    Comments (4) | Send Message
     
    I thought DISH is the one that owns the CLWR debt, not Sprint. This does not make sense to me.
    13 Jun 2013, 09:38 AM Reply Like
  • oldfart
    , contributor
    Comments (4) | Send Message
     
    long time participant in the telecom industry
    13 Jun 2013, 09:38 AM Reply Like
  • zanajohn1
    , contributor
    Comments (76) | Send Message
     
    Dave, can you spell s-p-e-c-t-r-u-m? During the cellular rollout,dinky little rural markets were selling bare licenses at $2/Mhzpop.
    Now what is voice: a disappearing medium. What is data: the new voice. So what do you think CLWR is worth? Shoot, they are going to be able to BUY Sprint and SoftBank combined. Here's some advice: hold on to your Cl A shares, sell at $60.
    13 Jun 2013, 09:59 AM Reply Like
  • Kettle Roast
    , contributor
    Comments (6) | Send Message
     
    Those Clearwire Class A shareholders beware if the net fall out from under you those shares won't be much of anything. Why? The 2.5 ghz that Clearwire holds is only worth something if its DEVELOPED other than that its just fools gold.
    DISH hasn't got the experience nor money to develop this spectrum to make it worth anything, why? The DISH network is a satellite provider, not a broadband distributor, even if Charlie grabs the spectrum he won't be able to develop any of it. Why? THE FCC will have to reclassify most of DISH's current spectrum holdings from that of Satellite Wireless to that of C banded frequency, and that it the clincher, Verizon and ATT will not allow a Satellite company to just gobble of airwaves for a nominal fee, so Charlie's got his hands full, he needs Softbank's investment money to help him deliver his broadband, and Sprints Network to carry his signals, so who's foolin who? No one gets a free ride on a dollar bid difference for only 25% of Clearwire stock whereas Sprint's bidding on 49% of the remaining shares! Just do the math.
    17 Jun 2013, 02:45 PM Reply Like
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