toggle

AAPL Stock: 113.29 ( + 0.37 )

Printed from http://www.macnn.com

Sprint offers to buy out rest of Clearwire for $2.1B

updated 06:38 pm EST, Thu December 13, 2012

Sprint would use Softbank cash to buy rest of Clearwire

Sprint, the United States' third-largest wireless carrier, has offered to acquire Clearwire for $2.1 billion. Sprint already owns half of Clearwire, having acquired a controlling stake in the carrier in October of this year after buying $100 million worth of shares off of an investment firm. This new offer would give Sprint access a larger spectrum portfolio, an asset the carrier needs if it wants to realize its plan of taking on AT&T and Verizon for primacy in the American wireless market.

Sprint would, according to Bloomberg, be paying for remaining Clearwire shares at $2.90 per share, a 5.5 percent premium over their closing price yesterday.

Clearwire was formed as a joint venture based on $3.2 billion in investments from Google, Intel, Comcast, Time Warner Cable, and others with the goal of disrupting the telecommunications industry. That goal never materialized, though, and Clearwire is on pace to lose $1 billion for 2012.

Under the proposed plan, Sprint would provide Clearwire with $800 million in interim financing in order to keep the firm afloat. Sprint's available cash comes in large part due to Softbank's recent decision to purchase 70 percent of the American carrier for roughly $20 billion. In the announcement of that deal, reports had it that acquiring more spectrum -- a likely development of any Clearwire acquisition -- was one of Softbank's main goals for moving forward with Sprint.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

Login Here

Not a member of the MacNN forums? Register now for free.

toggle

Network Headlines

Follow us on Facebook

toggle

Most Popular

Advertisement

Recent Reviews

ZTE Spro 2 Smart Projector

Home theaters are becoming more and more accessible these days, but maybe you've been a bit wary about buying a home projector. And h ...

MSI Geforce GTX 970 100ME

When Nvidia announced a new line of video cards in September 2014, many people thought things would continue to be business as usual i ...

Wren V5US Wireless Sound System

If you're a music fanatic, chances are you are, by extension, a bit fanatical about what you listen to your music on. If you're like ...

toggle

Most Commented