Softbank won't let Sprint spend a fortune on Clearwire deal
posted by Ray S. / Dec 14, 2012, 8:05 AM
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.
Posts: 510; Member since: Mar 16, 2011
Soft bank and Sprint are both soft. Tmobile rules both.
posted on Dec 14, 2012, 8:20 AM 5
Posts: 2; Member since: Dec 14, 2012
AGREED! Tmobile rules price wise but lack good phones. Only great phone they have in the SGS3
posted on Dec 14, 2012, 9:42 AM 0
Posts: 194; Member since: Dec 03, 2011
Sprint is run less by Hesse, and more by Murphy. Murphy's law that is. Just one bad decision after another.
posted on Dec 14, 2012, 11:03 AM 0
Posts: 453; Member since: Mar 14, 2011
Oh, but that spectrum...wouldn't want to let it fall into someone else's hands, would ya Sprint?
posted on Dec 14, 2012, 8:43 AM 2
Posts: 105; Member since: Dec 02, 2012
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.
posted on Dec 14, 2012, 9:44 AM 1
Posts: 1485; Member since: Mar 18, 2012
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.
posted on Dec 14, 2012, 9:05 AM 2
Posts: 131; Member since: Aug 27, 2012
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.
posted on Dec 14, 2012, 9:47 AM 2
Posts: 68; Member since: Nov 18, 2011
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%.
posted on Dec 15, 2012, 1:26 PM 0
Posts: 1452; Member since: Nov 05, 2010
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.
posted on Dec 14, 2012, 10:23 PM 0
Posts: 68; Member since: Nov 18, 2011
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"
posted on Dec 15, 2012, 1:33 PM 0
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