Clearwire To Sell Remainder of Company To Sprint Nextel Corp for $2.2B

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News Posted: Mon, Dec 17 2012 12:00 PM

Sprint and Clearwire have reached an agreement whereby Sprint will purchase roughly half of Clearwire for $2.2 billion (approximately $2.97 per share). After the transaction is complete, Sprint will have full ownership of Clearwire. The announcement comes days after Clearwire shareholders said a $2.90 per share offer from Sprint was too low.

With the spectrum it will acquire from Clearwire and its own spectrum, Sprint will be in a better position to compete in the wireless market.  Sprint CEO Dan Hesse said Sprint is in a position to "maximize the value of Clearwire’s spectrum" and deploy it to increase the wireless carrier's network capacity. Sprint will utilize Clearwire’s complementary 2.5 GHz spectrum assets with its Network Vision architecture as the spectrum and network is migrated to LTE standards.

The transaction between Sprint and Clearwire was unanimously approved by Clearwire’s board of directors. In addition, Comcast, Intel, and Bright House Networks, who together own about 13 percent of Clearwire’s voting shares, have committed to vote their shares in support of the transaction. SoftBank, a Japanese company that recently struck a deal to buy 70 percent of Sprint, has also given its approval of the transaction.

Various conditions apply to the deal. Assuming all goes well, the Clearwire and SoftBank transactions are expected to close mid-2013.

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Dorkstar replied on Mon, Dec 17 2012 1:27 PM

Gosh, all these companies with their hands in other companies is beginning to give me a headache.  Regardless, Sprint bought up nextel and their Boost mobile brand, and turned that into a massive profit making machine.  Let's see what they can do with clearwife.

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OSunday replied on Mon, Dec 17 2012 2:04 PM

Sprint is 70% owned by a Japanese company??

I didn't see that coming at all....

I've never heard of clearwire though, are they a smaller phone company or something exclusive to something for wireless?

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Tajon replied on Mon, Dec 17 2012 3:05 PM

From what I remember reading they aimed to offer purely LTE services for home and mobile broadband. I know they had some good pricing at one point if you were in an area they covered. I think most (all?) of sprints current LTE uses their network? I am unsure exactly., maybe im just making crap up.

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Dorkstar replied on Mon, Dec 17 2012 3:45 PM

Yeah that's about right.  They are mainly in large cities where there is a dense population.  I know they marketed very hard down in Austin, there were booths on the side of the road as well as storefronts every 5-10 miles.  Once I moved to Dallas, I didn't see the stores anymore, but did have a guy come to my door attempting to convince to get rid of FIOS for their internet.  I just chuckled and shut the door, poor feller.  

  Yeah, so basically they hype up the public by saying you can get internet as fast as cable or DSL over their "wifi".  I suppose for someone who just wants to check the facebook every now and then, it would be alright.  

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OSunday replied on Mon, Dec 17 2012 4:15 PM

Hmm, that's what I thought it was, city-wide Wi-Fi or something of the sort but I feel like the intermittent connectivity due to random variables like weather, how many other people are connected at a certain time or objects in between you and the source of the signal would make this a second rate service for internet... plus data limitations and potential vulnerabilities being connected to a wireless network with thousands of other people?

I guess the advantage is potentially being able to use your own internet connection "anywhere" in the city but it's not worth the trade off for other factors.
Maybe being backed and run by Sprint will help the technology develop to overcome some of those factors, because if pulled of right, it would revolutionize peoples connectivity and access to the internet 

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