Sprint loses its majority stake in Clearwire, but gains back voting rights
Regarded by many as a rocky relationship, Sprint and Clearwire are once again making some news this morning. Previously, the Now Network owned a 54 percent stake in Clearwire, but after some recent equity stakes sold by Clearwire, Sprint’s ownership in the company has fallen under the 50 percent mark.
Despite losing the status of being the majority stakeholder of Clearwire, Sprint is actually gaining back its voting rights – thus, aligning Sprint’s voting interest with its economic interest. Sprint spokesman Scott Sloat said, “Now that our economic interest has fallen below 50 percent, we are reclaiming our full voting rights so that our voting rights and economic rights are once again aligned.”
source: Reuters via Phonescoop
For many years now, Sprint has backed Clearwire by providing them billions of dollars in the form of bond sales. However, the tumultuous relationship between the two became fragile during many occasions. Last year even, Sprint reduced its voting shares in Clearwire, in order to prevent entering a default trigger when Clearwire faced a possible loan default of its own.
Despite losing the status of being the majority stakeholder of Clearwire, Sprint is actually gaining back its voting rights – thus, aligning Sprint’s voting interest with its economic interest. Sprint spokesman Scott Sloat said, “Now that our economic interest has fallen below 50 percent, we are reclaiming our full voting rights so that our voting rights and economic rights are once again aligned.”
source: Reuters via Phonescoop
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