Softbank won't let Sprint spend a fortune on Clearwire deal
Reuters reports that Softbank, which is in the process of acquiring 70% of Sprint, isn't going to let the number 3 wireless carrier in the US spend more than $2.97 a share for Clearwire. Although there's yet to be any official statement on the matter, it might turn out that the price is not high enough, as a number of investors have reportedly said that a per-share price of $5 to $8 would be much more appreciated by Clearwire. While we're absolutely certain that this is so, we aren't convinced that Sprint would want to pay so much for a company that's been in the red for quite a while.
We'll see how the story will develop and will update you accordingly.
1. richardyarrell2011 (banned) posted on 14 Dec 2012, 08:20 5
Soft bank and Sprint are both soft. Tmobile rules both.
6. 412Even posted on 14 Dec 2012, 09:42 0
AGREED! Tmobile rules price wise but lack good phones. Only great phone they have in the SGS3
8. JohnnyBravo posted on 14 Dec 2012, 09:45 2
Ahem! Nexus 4???? T-Mos price are good but I am not too sure about their coverage.
12. archangel9 posted on 14 Dec 2012, 11:50 0
I guess the GNote II isnt a great phone.And their coverage is waayyy more better
11. DonkeySauce posted on 14 Dec 2012, 11:03 0
Sprint is run less by Hesse, and more by Murphy. Murphy's law that is. Just one bad decision after another.
13. Sprintfan posted on 14 Dec 2012, 13:26 3
Haha Donkeysauce, You really are an a$$. So when Sprint has more spectrum for LTE than ATT/VZW combined and builds a better faster network than VZW how is that a bad decision. He$$e owns your face.
2. wumberpeb posted on 14 Dec 2012, 08:43 2
Oh, but that spectrum...wouldn't want to let it fall into someone else's hands, would ya Sprint?
7. JohnnyBravo posted on 14 Dec 2012, 09:44 1
of course not. They are the skinney chic next to two fat glutonous girls. They need to fight for whatever they can get. Do you remember how adamant Sprint CEO Hesse was againts the ATT & T-mobile deal??? He knew if ATT took over T-Mo it would spell doom for sprint.
3. cleon062 posted on 14 Dec 2012, 09:00 2
4. cripton805 posted on 14 Dec 2012, 09:05 2
Clearwire would be dumb to think their shares are worth $5-$8. Someone else would have to bid higher, but I dont see the need for VZW to have that expense right now. They can wait for cheaper because they have the money and they are fine with what they have right now. I don't see Att&t buying it either. Sprint is the best candidate.
9. asulect posted on 14 Dec 2012, 09:47 2
This reminds me of Yahoo refusing Microsoft's offer to buy it a few years ago, only a year or two later begged Microsoft to buy it which Microsoft was not interested anymore.
Clearwire maybe making the same mistake.
16. Sprintfan posted on 15 Dec 2012, 13:26 0
Trying to understand your logic for comparison. In 2008 msft wanted a search engine and yahoo was worth 44bln at $31.00 a share. Its now 19.00 and was as low as $14.00 this year. Clearwire is undervalued still at like $3.30 a share up >100% this year. So yahoo was over-prices and clear is underpriced. Clearwire has no choice. Sprint owns 51%.
14. nyamo posted on 14 Dec 2012, 13:56 0
Good to see someone in charge for sprint knows how not to screw up
15. skymitch89 posted on 14 Dec 2012, 22:23 0
I don't really see why Clear would want much more than $3 per share seeing how they've been in a downward spiral for the past few years. I know that I would rather take a guaranteed $2.90 per share over a risky $5-$8 per share which the purchaser might walk away from. Also, I don't believe that SoftBank should have much say in how much Sprint buys Clear for considering that the deal between SoftBank and Sprint isn't even in the final stages yet. I think that if Sprint were to buy out Clear, then the deal between SoftBank and Sprint goes though, that it might really help with their LTE rollout.
17. Sprintfan posted on 15 Dec 2012, 13:33 0
They do want more. If Sprint offered $2.90 and its over $3.00 and its still moving they will get a better deal. Sprint would also take CLWR's debt on which isnt good, THey have been in the red forever. Sprint just bought a small percent at the $2.90 mark a few weeks ago for 51% control so now a few weeks later CLWR wants more? Sprint pulled a sneaky one. I'm thinking now buying the whole things a few weeks ago might have been a mistake. Good article:http://www.bloomberg.com/news/
2012-12-14/clearwire-mount-kellett-investor-spurns-sprint-offer.html?cmpid=yhoo"Even so, Clearwire’s spectrum could fetch a much higher price, Mount Kellett said. Using AT&T’s acquisition of wireless company NextWave Wireless Inc. as a benchmark, Clearwire’s spectrum -- including its used and unused airwaves -- is worth as much as $18 billion, the firm said. Including debt, estimated taxes on a spectrum sale and other costs, Clearwire’s net value works out to $9.2 billion, Mount Kellett estimated"