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Dish Networks bid for Clearwire tops Sprint's offer

Posted: , by Alan F.

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Dish Networks bid for Clearwire tops Sprint's offer
Dish Network lobbed a grenade into Sprint's plan to buy the half of Clearwire that it doesn't already own. The satellite content provider is offering $3.30 a share for Clearwire's stock which is a healthy 11% premium over the $2.97 Sprint is set to pay. The Special Committee of the Clearwire Board of Directors has determined that it has the responsibility to look into Dish's offer even though it has already recommended the Sprint deal to the Board of Directors.

Dish Chairman Charles Ergen looks to breakup the Sprint-Clearwire deal

Dish Chairman Charles Ergen looks to breakup the Sprint-Clearwire deal

The deal offered by Dish includes the latter buying 11.4 billion MHz-POPs from Clearwire for $2.2 billion and Dish would have the option of leasing an addition 2 million MHz of spectrum at a price to be determined. Clearwire would help construct, maintain and manage AWS-4 spectrum and new deployments of 2.5 GHz spectrum for Dish.

The $3.30 per share tender offer for Clearwire's shares would be conditional and requires at least 25% of Clearwire stock to be tendered. Clearwire's stock, which closed Tuesday at $2.92, is up 9.5% in after-hours trading to $3.19 a share. The offer is technically an "indication of interest" as there are a number of  conditions involved. As you might expect, Sprint has responded to the $2.28 billion offer by saying it is illusory, not viable and inferior to the Sprint offer.

source: Clearwire via Engadget Press Release

15 Comments
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posted on 08 Jan 2013, 18:49 4

1. Birds (Posts: 927; Member since: 21 Nov 2011)


Clearwire is a ride or die chick....It wants Sprint so bad....

posted on 08 Jan 2013, 18:51 1

2. ajac09 (Posts: 1212; Member since: 30 Sep 2009)


does clear really want to be with a losing company that bad? Id have taken Dish instead.

posted on 08 Jan 2013, 21:27 3

8. Slammer (Posts: 816; Member since: 03 Jun 2010)


What experience does Dish have in cell service? Historically, Any cable company trying to make a game at wireless phone service, has not made inroads to compete effectively. Clearwire needs to look long term to protect assets. Sprint is viable.

John B.

posted on 09 Jan 2013, 07:36

14. ajac09 (Posts: 1212; Member since: 30 Sep 2009)


Hell what experience does sprint have? They are in the business but they suck at it. Dish is an up and coming cellular company and are offering more money and probably will be around alot longer then sprint.

posted on 08 Jan 2013, 19:18

4. zig8100 (Posts: 110; Member since: 13 Dec 2012)


Im pretty sure Sprint already bought them out already. That's why.

posted on 08 Jan 2013, 18:56

3. corporateJP (Posts: 1287; Member since: 28 Nov 2009)


These guys really want Sprint to take full ownership, good, bad, or indifferent.

posted on 08 Jan 2013, 19:37

5. cripton805 (Posts: 907; Member since: 18 Mar 2012)


Well Clear is worth more now that they accepted Sprints offer. A lot of investors pulled in and a lot would pull out if crappy Dish bought them.

posted on 08 Jan 2013, 19:43

7. NexusKoolaid (Posts: 257; Member since: 24 Oct 2011)


Re-read the press release. The "illusory, not viable and inferior" comment is from Sprint, not Clearwire.

posted on 08 Jan 2013, 23:43 2

12. cripton805 (Posts: 907; Member since: 18 Mar 2012)


I don't see what that has to do with my comment.

posted on 08 Jan 2013, 19:38

6. NexusKoolaid (Posts: 257; Member since: 24 Oct 2011)


Alan - double check the press release. I didn't see where Clearwire rejected or responded to the offer by saying it is illusory, .... What I read was that Clearwire recieved a letter from Sprint in which Sprint said it "believes that it is illusory, inferior to the Sprint transaction and not viable because it cannot be implemented in light of Clearwire's current legal and contractual obligations."

posted on 08 Jan 2013, 23:00

10. Alan01 (Posts: 151; Member since: 21 Mar 2012)


The quote is from Sprint, thanks for pointing that out. Still, based on the Special Committee's comments and the ties that Sprint has to the company, plus the conditions placed on the deal by Dish, Clearwire probably is saying that as well

Alan F.

posted on 08 Jan 2013, 22:59

9. MorePhonesThanNeeded (Posts: 616; Member since: 23 Oct 2011)


Sprint is just trying to posture eh, they have more than enough money woes without trying to buy a company they can barely afford, they still have that $15B iPhone 5 tab to pay Apple...Sprint, I wonder how long these guys can operate like this? They keep this up and T-Mobile may just outfox them, T-Mo is looking to turn on their LTE in coming weeks, what on earth is Sprint doing...playing 100,000 Pyramid with Clearwire, aren't these guys the owners of Z100 and that lot of radio stations?

posted on 08 Jan 2013, 23:45 1

13. cripton805 (Posts: 907; Member since: 18 Mar 2012)


Well Sprint already turned on their lte in July.

posted on 15 Jan 2013, 14:08

15. usguyver (Posts: 5; Member since: 08 Nov 2009)


you do know what the Softbank deal will go though and they are giving sprint like 20 billion bucks to help them and then they are given them even more latter so once this deal goes though then sprint will have plenty of money to go around and they will be able to pay off the money that they owe. so they will be fine and better off then t-mobile

posted on 08 Jan 2013, 23:05

11. techloverNYC (Posts: 254; Member since: 20 Nov 2012)


Did u guys know Dish Network is the meanest company to work for?

P.S: The guy in the pic looks mean

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