Sprint Signs Deal to Acquire Rest of Clearwire
Sprint, the nation’s third largest mobile operator, announced plans to acquire the roughly 50% stake of Clearwire that it doesn’t already own with a purchase price of $2.2 billion or $2.97 a share. The deal values Clearwire at $10 billion. In connection with the transaction, the two companies have arranged for up to $800 million in additional financing for Clearwire.
The deal consolidates Sprint’s longtime partner and is seen as move that is key to the company’s strategy in the U.S. wireless market, where it competes with AT&T and Verizon Wireless as well as Deutsche Telekom’s T-Mobile USA unit, which recently announced a merger with MetroPCS.
Clearwire’s board of directors unanimously approved the deal and the company has received commitments from Bright House Networks, Comcast, and Intel, which collectively own ca. 13% of Clearwire’s voting shares, to support the transaction. Softbank, which recently announced it will acquire 70% of Sprint for $20 billion, has also announced its support for the deal.