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FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

Sprint tells Clearwire no go on further investment

Sprint has declined to invest an additional $760 million in Clearwire as they had the option to do and that Clearwire really needs to continue expanding their network. Game On. What will Clearwire do to salvage their company?

»technology.canoe.ca/2011 ··· 911.html

Sprint Nextel let a Jan. 2 deadline pass without exercising its right to buy $760 million US of Clearwire Corp convertible debt, ruling out that source of funding for Clearwire.

Sprint, which owns about 54% of Clearwire, confirmed Monday that it had opted to not exercise the right but Sprint spokeswoman Cristi Allen declined further comment.

Clearwire has said that other options for new funding could come from the sale of up to $2 billion of wireless spectrum or from an equity investment from a company such as Sprint or T-Mobile USA, a unit of Deutsche Telekom.


kapil
The Kapil
join:2000-04-26
Chicago, IL

1 recommendation

kapil

Member

With Comcast busy with the NBC merger, Google having had a change of heart and cozying up with Verizon and Time Warner having its own cash issues, Clear may be hosed.

Of all the Clearwire investors, Sprint needs the network to stay lit the most for obvious reasons.

Maybe Sprint's decision to pass on the additional investment is just them trying to force Clearwire into bankruptcy....then Sprint can swoop in with some Debtor-In-Possession type financing and eventually buy out the network for pennies on the dollar. This way they get a WiMax network and spectrum for a fraction of the original cost....and they can spend their own cash to continue the buildout of a 4G network.

FFH5
Premium Member
join:2002-03-03
Tavistock NJ

FFH5

Premium Member

said by kapil:

Maybe Sprint's decision to pass on the additional investment is just them trying to force Clearwire into bankruptcy....then Sprint can swoop in with some Debtor-In-Possession type financing and eventually buy out the network for pennies on the dollar. This way they get a WiMax network and spectrum for a fraction of the original cost....and they can spend their own cash to continue the buildout of a 4G network.

That is what I think will happen as well.

mix
join:2002-03-19
Romeo, MI

mix

Member

Wasn't part of the formation of Clearwire that Sprint gave Clearwire a ton of their 2.5 Ghz spectrum? Now Sprint will have to buy that spectrum back?
LineNoise
join:2006-06-25
Downers Grove, IL

LineNoise

Member

No, Clearwire is talking about selling it to someone else.
MRCUR
join:2007-03-09
Lancaster, PA

MRCUR to mix

Member

to mix
Clearwire combined its own spectrum with Sprint's Xohm spectrum.