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.
- Mission Critical: Managing Mobile Applications & Content Smartphones, tablets and other mobile devices have become embedded in enterprise processes, thanks to the consumerization of IT and a new generation of...
- Use the Mobile App Mix to Choose an Enterprise App Store Strategy In this research report Gartner outlines how organizations can optimally secure, distribute, and manage mobile applications for employees and contracted workers.
- The Case for Mobile Apps Today's mobile apps turn handheld devices into e-book readers, portable navigation systems, digital wallets and more. And for organizations with mobile workers, they...
- Transforming enterprise applications for mobile environments This new white paper explains how Dell Application Modernization and Development Solution Set can help you understand when to develop new mobile apps,...
- What Does it Take to Deliver a Superior Customer Experience? The Two Top-Rated Online Retailers, B&H Photo and Crutchfield Electronics, Share Their Secrets Discuss practical CX tools and service methods such as contact center agents and the use of realtime speech analytics to help contact center...
- Keep Servers Up and Running and Attackers in the Dark An SSL/TLS handshake requires at least 10 times more processing power on a server than on the client. SSL renegotiation attacks can readily... All Mobile Apps White Papers | Webcasts