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Why Is Clearwire So Popular All of a Sudden?

Sprint Nextel (NYSE: S  ) , DISH Network (NASDAQ: DISH  ) , and Verizon (NYSE: VZ  ) have each been making a play for Clearwire (UNKNOWN: CLWR.DL  ) -- if not for the whole company, at least for some of its spectrum. This is a far cry from 2011 when it could barely get the time of day from its network partner and majority owner Sprint.

Not only that, but even some of its minority shareholders are all falling over themselves trying to lend the company money.

Why the change in attitude toward Clearwire? In the video below, Fool contributor Dan Radovsky explains it all.

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Read/Post Comments (3) | Recommend This Article (1)

Comments from our Foolish Readers

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  • Report this Comment On May 01, 2013, at 7:04 PM, HOSTone wrote:

    I don't think you consider the 400Lbs Gorilla in the room: Sprint had not the ability to purchase Clearwire in 2011 due to lack of funding. But since Clearwires stock price tanked, ownership of Clearwire is now more affordable. Sure Sprint has to deal with some unhappy minority investors, but I am sure that Sprint will purchase the shares already promised by Clear, Intel etc. and establish themselves with a very good position to block any sell of Clearwire spectrum or assets. Clearwire will subsequently belong to Sprint and even if the direct purchase fails at the moment, Sprint can further gain additional shares by converting future funding into preferred stock, making it even harder for companies like Crest to mount an effective defense against a Sprint takeover of Clearwire.

  • Report this Comment On May 02, 2013, at 12:36 PM, SyDVooh wrote:

    Regardless of who wants to takeover CLWR, as long as there are minority shareholders, there is fiduciary responsibility to those minority shareholders. They can't loot CLWR's assets to the detriment of minority shareholders.

    CLWR's current popularity is based on the fact that CLWR has more spectrum than any other USA wireless company. The demand for spectrum will only rise, and that will be sooner than later. It's like real estate, location, location, location!

  • Report this Comment On May 02, 2013, at 2:33 PM, spokanimal wrote:

    Sprint spent the last 3 years trying to hammer clearwire's stock price down to a level where they could essentially steal the company from the minority shareholders.

    What do you think the whole process of chumming up to LightSquared was all about?...

    ... it was about scaring clearwire shareholders into thinking sprint would abandon clearwire and driving clearwire's share price into the sewer... THAT's what the LightSquared gambit was all about.

    Sprint's ridiculous, $2.97 offer for clearwire is all about cashing in on those 3 years of efforts to manipulate clearwire's share price down to such low levels, even though the value of clearwire's assets, net of debt, are worth well more than TWICE that offering price.

    Once it was clear that clearwire's minority shareholders would Reject their ridiculous offer, Sprint hatched a "cashable, stock-option scheme"... which essentially PAYs OFF both Clearwire's executives and their board members once sprint succeeds in ramming their offer down the throats of the minority shareholders...

    ... a process that is being aided and abetted by clearwire's brass so that they can earn that payoff from sprint.

    Talk about corporate mal-feasance!!

    Talk about flushing their "fiduciary duty" down the toilet!!!

    This whole thing is absolutly nauseating. Dan Hesse is as crooked as they come.


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12/31/1969 7:00 PM
CLWR.DL $0.00 Down +0.00 +0.00%
Clearwire Corp CAPS Rating: **
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S $6.72 Up +0.07 +0.98%
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VZ $52.52 Up +0.37 +0.70%
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