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Dish Makes Counter-Offer for Clearwire
Sprint Derides Offer as 'Highly Conditional,' 'Not Viable'
by Karl Bode 08:23AM Wednesday Jan 09 2013 Tipped by AndyDufresne See Profile
Dish Network has made a counter offer to acquire Clearwire that tops the previous offer made by Sprint last month. According to the New York Times, Dish Network is bidding $3.30 a share, 11 percent more than Sprint. As some had guessed, Sprint's speed and tactics in getting a Clearwire deal done were largely in order to fend off a Dish acquisition of Clearwire. Dish is hoping to build an LTE network and Clearwire's resources make a delicious target for Charlie Ergen and company.

Sprint sent us the following statement on the news, calling Dish's offer "highly conditional":
quote:
"Sprint believes its agreement to acquire Clearwire, which offers Clearwire shareholders certain and attractive value, is superior to the highly conditional DISH proposal.

“In contrast, the DISH proposal includes a series of interdependent commercial agreements, debt and equity purchases and spectrum sales, which together with the other conditions required by DISH to complete the transaction, makes the proposal not viable. In addition, the DISH proposal would require Sprint to voluntarily waive rights that it holds as a stockholder of Clearwire and that it possesses through various vendor and customer contracts that significantly predate Sprint’s proposed acquisition of the remainder of Clearwire. Sprint does not intend to waive any of its rights and looks forward to closing the transaction with Clearwire and helping consumers across the country realize the benefits of this combination."
The FCC recently imposed conditions on Dish's LTE build in exchange for lessening some of the requirements attached to the spectrum. Under the FCC requirements, 70% of the Dish LTE network needs to be constructed in four years. Dish's LTE network, rumored to launch under the brand name "Ollo," isn't expected to see any substantial commercial deployment until around 2015 when the LTE Advanced gear they plan to use on the S band is available. If Dish can't find a partner, the spectrum most likely winds up being sold to AT&T.

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rradina

join:2000-08-08
Chesterfield, MO

Go Dish...

I don't like Charlie or his company* but aside from my feelings, we need more competition in the wireless industry.

* Bad experience in the 90s when they rebranded America's Top 40 package as 50 channels and raised rates -- yet I didn't have 50 channels. Service rep told me that it's 50 services, not channels despite the web site saying "channels". At the time, Sundance and IFC shared a channel and they told me this counted as 2. Ticked me off, went to DirecTV and swore I'd never have them again.

kapil
The Kapil

join:2000-04-26
Chicago, IL

What's the real story?

Sprint is the majority owner of Clearwire. Dish had to have known that without Sprint's consent, the bid will go nowhere...and with Sprint trying to acquire the remainder of Clearwire itself, Dish also had to know that the deal will probably not happen.

So, what's the real story here?

Did Dish go to Sprint looking to partner on Dish's own wireless ambitions and get turned down? Was Dish looking to acquire Sprint and the Softbank deal got in the way? Did Sprint upset Dish some other way? Because this doesn't make a whole lot of sense....unless it's just a rumor started by someone who wants to dump some CLWR stock.
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»www.kapilville.com

whfsdude
Premium
join:2003-04-05
Washington, DC
Reviews:
·Comcast

Re: What's the real story?

said by kapil:

Did Dish go to Sprint looking to partner on Dish's own wireless ambitions and get turned down? Was Dish looking to acquire Sprint and the Softbank deal got in the way? Did Sprint upset Dish some other way? Because this doesn't make a whole lot of sense....unless it's just a rumor started by someone who wants to dump some CLWR stock.

I am guessing that one of the arguments Sprint will make when it is trying to get approval for the majority Clearwire purchase to regulators is that "No one wants Clearwire, they cannot survive on their own."

Dish just made this argument a lot harder to make. There is also a lawsuit occurring (I don't remember the details) involving some of shareholders to stop the sale of Clearwire to Sprint.

Metatron2008
Premium
join:2008-09-02
united state

Re: What's the real story?

Clearwire loses money every year. There has to be another reason..

FFH
Premium
join:2002-03-03
Tavistock NJ
kudos:5
said by whfsdude:

I am guessing that one of the arguments Sprint will make when it is trying to get approval for the majority Clearwire purchase to regulators is that "No one wants Clearwire, they cannot survive on their own."

Dish just made this argument a lot harder to make. There is also a lawsuit occurring (I don't remember the details) involving some of shareholders to stop the sale of Clearwire to Sprint.

I think this is just some shareholders(Ergen of Dish) looking for greenmail. Pay us to go away. And the lawsuit will come after Sprint gets Clearwire if Sprint doesn't buy off Dish ahead of time.
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kem09030

join:2004-11-29
Rushville, IL
Dish may have wanted Sprint to buy the spectrum they just got approved. Sprint took a pass on the spectrum Dish had so now Dish wants to drive the price up on Clear. Sprint was also a bit of a thorn in the side of Dish when they were trying to get the spectrum approved. A lot of analysts are saying Dish just wants to drive the price up for Sprint...I think they may be right this time.
openbox9
Premium
join:2004-01-26
Germany
kudos:2
Everything has a price, even Sprint's stake in Clearwire. This bid will require Sprint to pony up more money. Other shareholders will want the better return on their investment and if Sprint doesn't allow it, expect a shareholder revolt and lawsuits.

Some of your scenarios are plausible. Softbank may have complicated Dish's plans and now Dish is pursuing alternatives.

trparky
Apple... YUM
Premium,MVM
join:2000-05-24
Cleveland, OH
kudos:2

If they can't get Clearwire, why not buy T-Mobile?

If they can't get Clearwire, why not buy T-Mobile?

whiteshp

join:2002-03-05
Xenia, OH

Re: If they can't get Clearwire, why not buy T-Mobile?

Dish has 0% interest in providing LTE. They are looking at spectrum as gold. Ie it will go up a lot. So tell the FCC they will deploy or release the spectrum. After they buy the spectrum that AT&T can't right now, they resell to AT&T after squatting on it for a value increase to help cover it's massive debt. They could also use it when time comes to try and get a buyer for Dish who wouldn't touch it due to it's debt load except for the high end spectrum portfolio.

trparky
Apple... YUM
Premium,MVM
join:2000-05-24
Cleveland, OH
kudos:2

Re: If they can't get Clearwire, why not buy T-Mobile?

So in other words, Dish has no plans at all to do anything with that spectrum except to sit on it and let it gain value.

So much for the pipe dream of having some strong competition against the big two carriers.
--
Tom
Boycott AT&T uVerse! | Tom's Android Blog | AOKP (The Android Open Kang Project)