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Sprint Takes Control of Clearwire
Buys out Craig McCaw, Now Owns 53% of Clearwire
by Karl Bode 08:26AM Thursday Oct 18 2012
After SoftBank acquired Sprint this week, rumors swirled that the company would also be interested in acquiring Clearwire -- sending Clearwire stock soaring. Those rumors were shot down however, insiders insisting that SoftBank will need much of the next year to settle into the Sprint deal. Interestingly though, Sprint has moved quickly to take majority control of Clearwire using the promise of future SoftBank cash to pay Craig McCaw $100 million for his 5% stake in Clearwire, bringing Sprint's ownership to 50.8%.

Sources are now telling numerous news outlets that a Sprint/Softbank full acquisition of Clearwire could happen in time, but only after the two companies have time to properly digest their new deal. Both companies seem fairly clearly worried that Clearwire might have not been available by then, with the company likely eyeballing a potentially partnership or even acquisition by Dish.

The move comes after a highly contentious few years between Sprint and Clearwire, which saw Sprint taking a lot of time trying to separate itself from Clearwire and build its own LTE network. Now that Sprint has a sugar daddy and is going to be on sound financial footing, the game has apparently changed.

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rdmiller

join:2005-09-23
Richmond, VA

Fresh cash?

If the Softbank deal hasn't closed yet, where did the "fresh cash" come from? Karl has been speculating Sprint was near bankruptcy.

mixdup

@charter.com

Re: Fresh cash?

None of the deals have closed yet. They can sign the letter of intent before any of the SoftBank money is in hand.

battleop

join:2005-09-28
00000

1 recommendation

Let me fix that for you.

Karl has been speculating praying Sprint was near bankruptcy.

Nothing creates traffic like someone else's misery.
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I do not, have not, and will not work for AT&T/Comcast/Verizon/Charter or similar sized company.

GeekJedi
RF is Good For You
Premium
join:2001-06-21
Mukwonago, WI

2 recommendations

Re: Fresh cash?

I have a hard time believing that Karl even wrote this. By law, every piece that Karl writes about Sprint MUST include a line such as "Sprint's Unlimited Data (Which likely isn't long for this world)..."
--
The goal of the broadcast engineer is to get all the meters on the transmitter to go as far to the right as possible!!
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Fresh cash?

by law must???

tshirt
Premium,MVM
join:2004-07-11
Snohomish, WA
kudos:4
"using the promise of future SoftBank cash to pay Craig McCaw $100 million for his 5% stake in Clearwire"

McCaw has long been ready to dump clearwire, and likely saw this as the best bid.

AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ
kudos:1

Re: Fresh cash?

said by tshirt:

"using the promise of future SoftBank cash to pay Craig McCaw $100 million for his 5% stake in Clearwire"

McCaw has long been ready to dump clearwire, and likely saw this as the best bid.

they probably did not want to deal with softbank either
--
--Standard disclaimers apply.--
iansltx

join:2007-02-19
Austin, TX
kudos:2
Reviews:
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$100 million is chump change for Sprint. The key here is that Sprint's strategy with regard to Clearwire changes whe SoftBank is around, since it's in SoftBank's interest to get economies of scale in TD-LTE 2500 as quickly as possible, since it makes their own network in Japan cheaper.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Sprint has said before after the iPhone deal that they were out of cash. It was on the Morning Bytes here and on several other sites.
DarnellP

join:2004-10-12
Las Vegas, NV

Re: Fresh cash?

said by hottboiinnc:

Sprint has said before after the iPhone deal that they were out of cash. It was on the Morning Bytes here and on several other sites.

They never said any such thing. Why do you continually post nonsense? Their quarterly reports indicate that even before the SoftBank deal they had $6.8 BILLION in cash and equivalents on hand. Facts OWN you!

AVD
Respice, Adspice, Prospice
Premium
join:2003-02-06
Onion, NJ
kudos:1

Re: Fresh cash?

6.8B??? why no LTE in NYC then? What was the equivalent? Stock in Clearwire?
--
--Standard disclaimers apply.--

Metatron2008
Premium
join:2008-09-02
united state

Clearwires spectrum is worth billions.

Worth far far more then the rest. If they can turn on all 100 mhz instead of using 5...
iansltx

join:2007-02-19
Austin, TX
kudos:2
Reviews:
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Re: Clearwires spectrum is worth billions.

Clearwire has massively varying amounts of spectrum, depending on the city. Some places their (+ Sprint's) BRS plus leased EBS is 100MHz. Other places, not so much.

Also, in some areas their WiMAX network is using a significant chunk of spectrum, due to poor spectrum reuse capabilities of 802.16e (you can't use the same channel on all sector on the same site).
BigDaddyPin

join:2012-09-05
Westminster, MD

Sprint to be #1

Give it a few years and Sprint will be #1 over Att & Verizon.

verizonlteda

@myvzw.com

Re: Sprint to be #1

LMAO that made me drop my coke. Yeah earth will freeze over before sprint would be number 1 lol.

Woody79_00
I run Linux am I still a PC?
Premium
join:2004-07-08
united state

Re: Sprint to be #1

said by verizonlteda :

LMAO that made me drop my coke. Yeah earth will freeze over before sprint would be number 1 lol.

I will bet in 3-4 years, Sprint will have taken a significant chunk of Verizon and ATT customers....You way way way way way way underestimate Softbank....these japanese busniessmen are very smart...i can guarantee you their board and CEO is smarter then ATT and Verizon's put together....this buying of Sprint of Softbank was not just grabbing for straws to get into the USA market...they could have bought T-Mobile or someone else for less price.

Nope Softbank has a plan...and Softbank will expand Sprint's coverage and offer a broad range of competitive services for competitive rates....Softbank will FORCE ATT and Verizon to compete on price and that will be a win-win for the American consumer....folks really need to stop drinking the VZW and ATT kool-aid...
Telco

join:2008-12-19

Re: Sprint to be #1

I doubt it. Sprint's unlimited data is their weakness in my opinion. You cannot have one of the weakest networks in America yet continue to offer unlimited.
iansltx

join:2007-02-19
Austin, TX
kudos:2

Re: Sprint to be #1

Give it 18 months. Sprint will not have the weakest network anymore.
BiggA

join:2005-11-23
EARTH
If they crank up LTE on 100mhz of Clearwire spectrum, they will be able to handle an order of magnitude more data than Verizon or AT&T.
meowmeow

join:2003-07-26
Helena, MT
You do realize that SoftBank is basically the Sprint of Japan, so to speak, right? It started as Vodafone (which owns a big chunk of Verizon Wireless) and Vodafone considered their Japanese network basically a failure. SoftBank is in third place in the Japanese market, and that despite being the exclusive iPhone carrier before the iPhone went multi-carrier. They're well known in Japan for slow speeds and poor coverage. Even Au/KDDI is considered better - despite being CDMA! Thus, they're the Verizon of the Japanese market (though not as strong - I suspect because the Japanese are a bit more tech-savvy and don't want CDMA). NTT DoCoMo is the AT&T - the huge gorilla with a fast network, excellent coverage, etc.
BigDaddyPin

join:2012-09-05
Westminster, MD
Dec. 21st, we'll freeze over......If you pay attention to the Markets, you would agree...

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

Give it a few years and Sprint will be #1 over Att & Verizon.

Maybe! But Sprint is notorious for not following thru. The odds would be heavily against them.
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BiggA

join:2005-11-23
EARTH

Re: Sprint to be #1

Not if they outbuilt AT&T and Verizon, and used their spectrum position with super-fast LTE to their advantage.

OSUGoose

join:2007-12-27
Columbus, OH

Really

Does this all matter? Arnt we all doomed on new years eve, not supposed to make it into 2013? Maybe the Myans meant the world would end if x candidate gets elected/reelected (depending on which side your on).

BF69 Fan

@charter.com

Re: Really

If December 21st is new years eve where you are from, sure.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
no its 12-12-12 and its according to the Mayan Calender. Because that is when their's ended. But what is never stated is they only died then is the Spaniards are the one that killed them off.

OSUGoose

join:2007-12-27
Columbus, OH
Everybody! It was a joke, I wasn't being serious/exact with the time/dates, jesus!
qworster

join:2001-11-25
Bryn Mawr, PA

Sprint had control of Clear and gave it up last year.

They had control and gave it up in case Clear went belly up and their creditors decided to come after Sprint as majority shareholder and owner.
flycuban

join:2005-04-25
Homestead, FL

Re: Sprint had control of Clear and gave it up last year.

CYA baby