Dish counters Sprint with higher bid for Clearwire
The US$3.30-per-share bid could set off a bidding war between two companies already at odds over spectrum
IDG News Service - Dish Network has offered to buy Clearwire for US$3.30 per share, throwing a wrench in Sprint Nextel's deal to buy its mobile broadband partner for $2.97 per share.
Clearwire disclosed Dish's offer in a press release on Tuesday afternoon, saying it has an obligation to consider the offer.
Sprint owns almost half of Clearwire's stock, and on Dec. 17, the two companies reached a deal for Sprint to buy the rest of the company. Sprint still delivers 4G service to many of its customers over Clearwire's WiMax network. If the deal goes through, Sprint plans to use Clearwire's large spectrum holdings to supplement its LTE network. The Sprint deal depends on Softbank's $20 billion bid for most of Sprint going through.
Dish's bid could set off a bidding war for Clearwire, which has some of the biggest spectrum holdings of any U.S. carrier. Clearwire holds about 160MHz of spectrum in many major U.S. markets, though its frequencies are in high bands that are not of prime quality for mobile broadband.
Some Clearwire shareholders have objected to Sprint's offer, saying the company's spectrum holdings alone are worth several times the roughly $2.2 billion that Sprint is offering for the company.
Dish is a satellite TV company that has obtained approval from the U.S. Federal Communications Commission to use some of its satellite spectrum for terrestrial mobile service. It was already at odds with Sprint before making its bid for Clearwire, because Sprint won spectrum rule changes from the FCC that diminished Dish's ability to use its new cellular spectrum.
Before Dish offered to buy Clearwire, it had offered to buy some of the company's spectrum, at substantially the same pricing, Clearwire disclosed in its press release.
- 15 Non-Certified IT Skills Growing in Demand
- How 19 Tech Titans Target Healthcare
- Twitter Suffering From Growing Pains (and Facebook Comparisons)
- Agile Comes to Data Integration
- Slideshow: 7 security mistakes people make with their mobile device
- iOS vs. Android: Which is more secure?
- 11 sure signs you've been hacked
- Performance Management: The Mobile App Development Playbook This comprehensive 16 page Forrester Research, Inc. report, authored by Jeffrey Hammond, Forrester VP and Principal Analyst, details a number of valuable, commonly...
- New Problems Require Innovative Solutions The mobile market is expected to be worth $25 billion by 2015
- Getting Agnostic about Mobile Devices The idea of being able to interact with customers, prospects, and stay attuned to competitive pressures is not new, but the velocity at...
- HP HAVEn: See the big picture in Big Data HP HAVEn is the industry's first comprehensive, scalable, open, and secure platform for Big Data. Enterprises are drowning in a sea of data...
- Meg Whitman presents Unlocking IT with Big Data During this Web Event you will hear Meg Whitman, President and CEO, HP discuss HAVEn - the #1 Big Data platform, as well...
- The New Way to Work Knowledge Vault This Knowledge Vault focuses on how, in today's increasingly virtual world, it's more important than ever to engage deeply with employees, suppliers, partners,... All Mobile Apps White Papers | Webcasts