Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Why Clearwire Shares Were Cleared for Takeoff

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Clearwire (UNKNOWN: CLWR.DL  ) were cleared for takeoff today, up by 15% at the high, on reports that Sprint Nextel (NYSE: S  ) is actively considering buying the rest of the company.

So what: Sprint already owns 51% of Clearwire, but despite that majority ownership is unable to exert control over key strategic decisions. CNBC said that a deal could happen by the end of the year and Clearwire could be sold for greater than $3 per share.

Now what: Talk of Sprint acquiring the rest of Clearwire has persisted for ages, as it would give Sprint additional spectrum holdings that would make it more competitive with its larger rivals. With the Softbank deal that's currently pending, Sprint would have more funds at its disposal to expand its network, as well as potentially acquire Clearwire. This isn't the first time investors have heard these rumors before, and it won't be the last.

Interested in more info on Clearwire? Add it to your watchlist by clicking here.

Read/Post Comments (1) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On December 11, 2012, at 4:44 PM, prginww wrote:

    Clearwire has exhibited good relative strength since the softbank bid for sprint came to light simply because the absorption of clearwire as well is virtually certain.

    Sprint wanted to wait until it received the remainder of it's buyout cash from softbank but as the days tick by, the focus is increasingly on the huge value of clearwire's spectrum which, net of clearwire's debt, is worth much more than $3 a share.

    Hesse realizes that the longer he waits, the more the market will likely force him to pay for clearwire as the value of all that spectrum increasingly comes to light.

    That's especially true in light of major shareholder, Mt. Kellet's, efforts to compel clearwire to monetize some of their spectrum in order to realize the tremendous value that's locked up in the company's assets.

    If sprint ends up acquiring the remainder of clearwire for less than $5 a share, it would be a significant breach of fiduciary duty on the part of clearwire's board. The $3/share price cited in the CNBC piece had better be treated as an "opening bid" or I see this thing landing in a court of law.


Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2148978, ~/Articles/ArticleHandler.aspx, 10/24/2016 9:46:19 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 30 minutes ago Sponsored by:
DOW 18,223.03 77.32 0.43%
S&P 500 2,151.33 10.17 0.47%
NASD 5,309.83 52.43 1.00%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

12/31/1969 7:00 PM
CLWR.DL $0.00 Down +0.00 +0.00%
Clearwire Corp CAPS Rating: **
S $6.92 Up +0.37 +5.65%
Sprint CAPS Rating: **