Clearwire agrees to new, higher Sprint offer

Sprint would pay $5 per share to buy out the rest of its wireless partner, beating Dish Network's most recent bid

Sprint Nextel has offered and Clearwire has accepted a bid of US$5 per share for the struggling wireless network provider, raising the stakes yet again in an expensive bidding war between Sprint and satellite service provider Dish Network.

The new offer boosts Sprint's willingness to pay by nearly 50 percent from its previous bid of $3.40 per share and beats Dish's latest offer of $4.40 per share. The bid values Clearwire at about $14 billion.

The fate of Clearwire is the key question remaining in a long-running battle between Sprint and Dish, a mobile upstart that this year has tried to buy both Clearwire and Sprint itself. Amid growing demand for mobile data capacity, Clearwire's massive spectrum holdings could be a decisive asset for any company that owned them. Sprint's plans call for an LTE network being built by Clearwire to complement Sprint's own LTE network in areas of high demand.

Earlier this month, Clearwire's board of directors had endorsed Dish's latest bid of $4.40 per share. But once again, Sprint has increased what it's willing to pay for the company. Its original bid for Clearwire last December was $2.90 per share. In a clear effort to demonstrate how much Clearwire shareholders have to gain from its latest offer, the companies said on Thursday that the new bid represents a 285 percent premium to Clearwire's closing price on Oct. 10 last year, just before reports about a possible SoftBank buyout of Sprint started to drive up Clearwire's shares.

On Monday, Sprint sued to block Dish's bid for Clearwire, saying the plan would violate commitments Clearwire had already made in a shareholder agreement.

Sprint plans to buy out Clearwire as part of a larger deal in which Japanese service provider SoftBank plans to pay $21.6 billion to take over Sprint. Dish had attempted to derail that deal, too, offering $25.5 billion for Sprint, but on Tuesday the satellite company said it was dropping that plan.

Stephen Lawson covers mobile, storage and networking technologies for The IDG News Service. Follow Stephen on Twitter at @sdlawsonmedia. Stephen's e-mail address is stephen_lawson@idg.com

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags mobileMergers and acquisitionsbusiness issuesClearwiresprint nextelSoftbankDISH Network

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Stephen Lawson

IDG News Service
Show Comments

Father’s Day Gift Guide

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?