Sprint's Latest Unexpected Twist

A telecom giant had some surprising investment news last week. It was expected that a majority of Sprint (NYSE: S  ) would soon be bought out by Japan's SoftBank, while Sprint would potentially buy out smaller company Clearwire. But just like a soap opera, a huge plot twist might be in the works, with two surprising new players: DISH Network  (NASDAQ: DISH  ) and Verizon (NYSE: VZ  ) . The companies have made plans to buy out both Sprint and Clearwire, respectively.

Clearwire, Sprint, and Verizon stock have all enjoyed a boost in price since the news broke, but what does this really mean for investors looking to buy stocks? Fool contributor Caroline Bennett examines the situation, and tells investors whether Sprint shareholders should be excited -- or apprehensive -- about this turn of events.

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  • Report this Comment On April 22, 2013, at 11:21 AM, ddeleo wrote:

    I'm sorry I will have to disagree with your closing statements concerning Dish rocking SPRINTS progress in LTE if they buy them.

    If nothing changed to what is current, that is Sprint plugs into Clearwire, and Clearwire being a wholesaler to other companies such as Dish, then the fact that Dish buying Sprint would not cause a complication because Clearwire was always meant for others such as Dish to plug into.

    The other big point being missed is that Dish wants Sprint for its LTE and Clearwires advanced LTE. It is the only reason Dish wants it. To impede the LTE progress amounts to shooting yourself in the foot.

    If Dish succeeds in buying Sprint, Dish will step aside and let the momentum of the Sprint Network Vision continue, while letting Clearwire complete their work too. Dish will then plug in as it would if Clearwire was a wholesaler.

  • Report this Comment On April 22, 2013, at 12:46 PM, spokanimal wrote:

    You need to talk to the guy that writes what you're reading, Caroline. You didn't make a whole lot of sense.

    Firstly, ddeleo is right about LTE and network vision.

    Secondly, Verizon isn't trying to "buy clearwire". Verizon has only offered to buy about 10% of clearwire's spectrum, nothing more.

    Spok

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