toggle

AAPL Stock: 115.38 ( -3.06 )

Printed from http://www.macnn.com

Sprint makes it official: will buy Clearwire for $2.2B

updated 09:48 am EST, Mon December 17, 2012

Sprint now will leverage Clearwire's 2.5GHz spectrum assets

Confirming earlier reports of an acquisition in the offing, Sprint today announced that it would be taking full ownership of wireless broadband wholesaler Clearwire. The final price for the deal came in at $2.2 billion, just above earlier estimates that had Sprint paying $2.1 billion. That price represents a 128 percent premium to Clearwire's closing share price from October 10, the day before Sprint and Softbank's discussions were confirmed in the marketplace.

Part of Softbank's rationale for buying a controlling share of Sprint was that it could use Sprint's standing in the market as a base for expansion. Indeed, the purchasing of more spectrum to bolster Sprint's current holdings was a main point of emphasis in talks surrounding the buy.

The 2.5GHz spectrum assets Clearwire holds will prove complementary to Sprint's own current holdings, and executives at the nation's third-largest carrier view the acquisition as essential to improving Sprint's ability to compete against Verizon and AT&T.

The deal will see Sprint providing up to $800 million in financing for Clearwire in the form of exchangeable notes. Those notes will be exchangeable under certain circumstances for Clearwire common stock at $1.50 per share. Sprint will purchase $80 million of exchangeable notes per month for up to 10 months beginning in January of 2013.

The deal is still subject to approval from various parties. It will require the approval of a majority of Clearwire's stockholders not affiliated with Sprint or Softbank. The deal is also contingent upon the completion of Softbank's acquisition of Sprint.




by MacNN Staff

POST TOOLS:

TAGS :

toggle

Comments

  1. Mr. Strat

    Forum Regular

    Joined: 01-23-02

    PT Barnum was right.

  1. Grendelmon

    Mac Enthusiast

    Joined: 12-26-07

    Originally Posted by Mr. StratView Post

    PT Barnum was right.



    Barnum is widely, but erroneously, credited with coining the phrase "There's a sucker born every minute."

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

HP 14-x030nr 14-inch Chromebook

If you're like us, chances are you've come to realize that you need the ability to access the Internet on the go. Also, you've prob ...

15-inch MacBook Pro with Force Touch

Apple's 15-inch Retina MacBook Pro continues to be a popular notebook with professional users and prosumers looking for the ultimate ...

Typo keyboard for iPad

Following numerous legal shenanigans between Typo -- a company founded in part by Ryan Seacrest -- and the clear object of his physica ...

toggle

Most Commented