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WSJ: Verizon offers $1.5 billion for Clearwire's spectrum license leases in major markets

Posted: , by Alan F.

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WSJ: Verizon offers $1.5 billion for Clearwire's spectrum license leases in major markets
As if the three way love triangle between Dish Network, Sprint and Clearwire couldn't get more complicated, a third party bid of $1.5 billion for Clearwire's spectrum licenses in major markets now makes this an extremely complicated situation. For those who missed it, earlier this morning Dish Network offered to buy Sprint for $25.5 billion. Dish already has an offer on the table to buy the shares of network wholesaler Clearwire not owned by Sprint for $3.30 a share. With a majority of the stock already in hand, Sprint's $2.97 a share bid for Clearwire was pretty much assured to be a winner. And with a deal between  Clearwire and Sprint that allowed the network wholesaler to draw down $800 million from the carrier in the form of debt convertible into more Clearwire stock, Dish had all but bowed out of the Clearwire picture. That is, until Monday when Dish Network offered $25.5 billion to buy Sprint, and apparently Clearwire.

But a mysterious third party only called "Party J" and assumed to be Verizon by the WSJ, has offered $1.5 billion to buy spectrum leases owned by Clearwire in major markets. The $1.5 billion that the network wholesaler would receive in the deal would be lowered by the amount it currently pays for the leases, which sources say could be a substantial figure. Sprint, which owns more than 50% of Clearwire could put the kibosh on the offer. Meanwhile, the latter firm said that if no deal is completed, it could face bankruptcy.

And all of this now has to fit into Dish Network's $25.5 billion bid for Sprint, which trumps the offer from Japan's Softbank to purchase 70% of the nation's third largest carrier for $20 billion. And you think balancing your checkbook is hard work?

source: WSJ

9 Comments
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posted on 15 Apr 2013, 12:38 2

1. wiiandds (Posts: 60; Member since: 15 Mar 2013)


Now this is getting insane.

posted on 15 Apr 2013, 12:51 4

2. ZeroCide (Posts: 695; Member since: 09 Jan 2013)


Sprint must feel like its being pulled into all kinds of different directions. Things must be crazy there right now. I thought the reason sprint was buying clearwire was so they could use those spectrums in those markets.

posted on 15 Apr 2013, 12:57

3. wiiandds (Posts: 60; Member since: 15 Mar 2013)


Thats what I thought.

posted on 15 Apr 2013, 13:43 1

4. Droid_X_Doug (Posts: 5866; Member since: 22 Dec 2010)


Sprint is in a circumstance that is analogous to the popular girl with multiple invites to the high school prom. They most certainly are enjoying the attention.

posted on 15 Apr 2013, 13:47 3

5. Droid_X_Doug (Posts: 5866; Member since: 22 Dec 2010)


Sprint needs to re-capitalize itself. Softbank was the best option at the time. Now Dish decides that it wants to play in the U.S. cellular market and Sprint is its best option. If there is nothing in the Softbank transaction that precludes Sprint from accepting a better deal, there may be a bit of a bidding war between Dish and Softbank.

Never a dull day.

posted on 15 Apr 2013, 14:02

6. milesboy5 (Posts: 156; Member since: 07 Nov 2012)


Should be interesting to see how this all plays out and what the future is for Sprint.

posted on 15 Apr 2013, 15:19

7. QWIKSTRIKE (Posts: 885; Member since: 09 Mar 2010)


Dish network wants to outs Verizon or join Verizon in the wireless arena. Verizon with wireless and movie channels VOD is becoming a Juggernaut. Dish Network bid for Sprint will put them in the drivers seat along side of Verizon so to speak. The problem is that I fear prices will move up with this kind of deal for Sprint customers!

posted on 15 Apr 2013, 15:38 3

8. JunitoNH (Posts: 927; Member since: 15 Feb 2012)


This should had read, Verizon customers get ready to pay more.

posted on 16 Apr 2013, 00:10

9. quakan (Posts: 1199; Member since: 02 Mar 2011)


I thought the exact same thing.

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