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Resolving the Sprint and Clearwire Drama

Sprint Nextel (NYSE: S  ) and Clearwire (UNKNOWN: CLWR.DL  ) are nearing the end of their multiple bidding wars. Figuring out what Japanese wireless vendor Softbank and all-American broadcaster DISH Network (NASDAQ: DISH  ) might get is tough enough, but hardly the whole story. This drama is so complicated, one of the targets (Sprint) is even bidding on the other one (Clearwire).

The boards of both Sprint and Clearwire have picked their respective poisons, and they're largely backed by independent shareholder-rights groups. So what's the final verdict?

In the following video, Fool contributor Anders Bylund presents the current lay of the land, and why this is a pretty good deal for everyone involved. Spoiler alert: Nobody walks home empty-handed.

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Read/Post Comments (5) | Recommend This Article (2)

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 June 16, 2013, at 10:27 AM, sjhlion wrote:

    You have one thing incorrect. Dish has not put in an offer to purchase Clearwire. They are only offering for shares and will still not own a majority of Clearwire. Sprint will still be the majority holder.

  • Report this Comment On June 16, 2013, at 12:09 PM, lindentaxi1 wrote:

    clwr shares will get a lot higher within 2 weeks

  • Report this Comment On June 16, 2013, at 3:50 PM, Fabe76522 wrote:

    Yet another summary article that is a few weeks late. Regurgiating aricles and promoting Apple is the Motley Fool seems to do...

  • Report this Comment On June 16, 2013, at 10:14 PM, motleyinfo7 wrote:

    The author of this article is correct as part of the deal CLEAR will be able to dilute Sprint's share by issuing new shares as part of this deal and then issuing them to DISH. Technically if DISH wanted to they could completely dilute Sprint's share to smithereens which is what Sprint fears, but will not happen. What will happen is that their rates will go up for how much they are charged on the wholesale level. This could substantially increase the price of CLEAR while drastically reducing margins for Sprint.

    Currently Sprint is paying just south of $2 per wholesale line, the actual market price would be just north of $9 in the range of $9.25 - $9.62 based on competitor pricing. This would immediately making CLEAR a profitable company while taking a big chunk off from Sprint.

  • Report this Comment On June 17, 2013, at 1:02 PM, spokanimal wrote:

    This Anders fellow is a younger guy with nothing really new to say.

    His video had about 1/20 the value that that of a seasoned analyst might offer. He just recited some of the broad ideas behind the modest amount that he appears to have read on the issue.


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Related Tickers

12/31/1969 7:00 PM
CLWR.DL $0.00 Down +0.00 +0.00%
Clearwire Corp CAPS Rating: **
DISH $54.78 Down -0.26 -0.47%
DISH Network CAPS Rating: **
S $6.63 Down -0.03 -0.45%
Sprint CAPS Rating: **