Sprint Nextel has offered to acquire the remaining shares of Clearwire that it does not already own for a reported $2.1 billion.
Clearwire confirmed that it is currently in discussions with Sprint regarding a potential strategic transaction.
- In October, Sprint increased its stake in Clearwire to 50.8% by acquiring the shares of Eagle River Holdings for $100 million. Sprint previously held a 48% share in Clearwire, so this October transaction restored Sprint's majority control of the firm. Eagle River Holdings is controlled by telecom pioneer Craig McCaw.
- Clearwire holds the largest spectrum portfolio in the U.S. but in upper bands. Its spectrum is an average 163 MHz in the top 100 U.S. markets.
- Clearwire operates a nationwide WiMAX network and is planning to make the transition to TD-LTE. Its main wholesale customer and investor is Sprint, which has extended its 4G agreement through 2015. The companies have outlined ways of bridging their FD-LTE and TD-LTE networks with dual-mode devices that are under development.
- Also in October, SoftBank announced plans to invest $20.1 billion to acquire a 70% in Sprint. The deal consists of $12.1 billion to be distributed to Sprint stockholders and $8.0 billion of new capital to strengthen Sprint’s balance sheet. The investment aims to accelerate Sprint's next generation network and its competitive position as the No. 3 U.S. mobile operator. For Softbank, this represents a major leap beyond its home market of Japan, where it is the No. 3 mobile operator and No. 2 wireline broadband provider. The companies hope to get the deal done by mid-2013, pending regulatory approvals.
