Skip to comments.Sources Claim Sprint, Clearwire Are Close to a Buyout Deal
Posted on 12/12/2012 10:28:15 AM PST by Ernest_at_the_Beach
Sprint hopes to complete the deal in the same timeframe the Softbank deal is wrapped up
The department that handles acquisitions and mergers at Sprint has been very busy lately. Sprint announced that it would be selling a majority stake to Softbank for $20 billion in October. Sprint has also long coveted the wireless spectrum that partner Clearwire holds and uses for wireless internet service.
Sprint has made no secret of the fact that it wants to own all of Clearwire. CNBC reports that that Sprint and Clearwire are moving closer to a deal that would see Sprint acquire the reamaining 49% of Clearwire shares. According to the sources, the deal isn't imminent but the two companies are in active negotiations and hope to make an announcement by the end of the year.
Sprint has also reportedly been having talks with other major Clearwire shareholders, including Intel and Comcast, to purchase the stock those companies hold in Clearwire at roughly 3 dollars per share.
Interestingly, in June of 2012 Sprint cut its voting stake of shares in Clearwire to less than 50%. Sprint said later that it had cut its voting shares to avoid Clearwire's potential loan default from triggering issues with its own debit.
Clearwire plans to reach between 120 and 140 million people in the United States by the end of 2010, officials said today. The company will use Sprints towers, fiber network and IT support. Other developments from the collaboration include: Comcast, Time Warner Cable, Bright House Networks and Clearwire will become wholesale resellers of Sprints 3G wireless voice and data services. Clearwire will support Googles Android mobile operating system in future consumer devices. Google will develop Web services, advertising and applications for mobile WiMAX devices, and also will be Clearwires official search partner for future applications, Google will be the official search partner for Sprints mobile services. Google will put software such as Google Maps, Gmail and YouTube on select Sprint mobile phones. Intel will work with component suppliers to embed WiMAX chips into the Centrino 2-based devices such as laptops and other Internet appliances. Sprint, Comcast, Time Warner Cable and Bright House Networks will be wholesale network providers for Clearwire.
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