Earlier today we reported on how Softbank had capped Sprint’s bid on the acquisition of Clearwire, reportedly only allowing Sprint to offer a maximum amount of $2.97 per share to purchase the remaining shares in Clearwire that they currently do not own. Well it looks like the $2.97 cap was met as Sprint has announced that they would be acquiring the remaining shares in Clearwire, giving them 100% control, for a whopping sum of $2.2 billion. Granted there are probably some regulatory hurdles that need to be overcome first, but Sprint has already called it a “definitive agreement” in its statement. According to Sprint’s CEO, Dan Hesse:
“Today’s transaction marks yet another significant step in Sprint’s improved competitive position and ability to offer customers better products, more choices and better services. Sprint is uniquely positioned to maximize the value of Clearwire’s spectrum and efficiently deploy it to increase Sprint’s network capacity. We believe this transaction, particularly when leveraged with our SoftBank relationship, is further validation of our strategy and allows Sprint to control its network destiny.”
Sprint will be using Clearwire’s spectrum to help boost its 4G LTE network, with Clearwire’s president and CEO, Erik Prusch calling this deal “the best path forward”. The deal, assuming there are no objections and pending regulatory approval, is expected to be concluded mid-2013. [Press release]