Dish Networks bid for Clearwire tops Sprint's offer

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.

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

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15 Comments

1. Birds

Posts: 1172; Member since: Nov 21, 2011

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

2. ajac09

Posts: 1482; Member since: Sep 30, 2009

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

8. Slammer

Posts: 1515; Member since: Jun 03, 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.

14. ajac09

Posts: 1482; Member since: Sep 30, 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.

4. zig8100

Posts: 243; Member since: Dec 13, 2012

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

3. corporateJP

Posts: 2458; Member since: Nov 28, 2009

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

5. cripton805

Posts: 1485; Member since: Mar 18, 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.

7. NexusKoolaid

Posts: 493; Member since: Oct 24, 2011

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

12. cripton805

Posts: 1485; Member since: Mar 18, 2012

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

6. NexusKoolaid

Posts: 493; Member since: Oct 24, 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."

10. Alan01

Posts: 584; Member since: Mar 21, 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.

9. MorePhonesThanNeeded

Posts: 645; Member since: Oct 23, 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?

13. cripton805

Posts: 1485; Member since: Mar 18, 2012

Well Sprint already turned on their lte in July.

15. usguyver

Posts: 6; Member since: Nov 08, 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

11. techloverNYC

Posts: 601; Member since: Nov 20, 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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