Softbank caps Sprint’s bid on Clearwire

As some of you guys have heard, Japanese carrier Softbank is looking to acquire a 70% control in Sprint. At the same time it seems that Sprint is also interested in acquiring Clearwire, whom Sprint currently owns 50.45% in. According to reports, Sprint is said to be offering Clearwire $2.90 per share in order to buy out the remaining shares in the company, but according to Clearwire shareholders, $2.90 is too low for their liking, especially considering that they have valued Clearwire’s shares to be worth at least $5.

However it turns out that Softbank who will eventually own a controlling stake in Sprint has said no to the possibility of increasing the bid, imposing a cap at $2.97 per share. Some are speculating that this is merely Softbank’s way of negotiating and according to Pacific Crest analyst Michael Bowen, he believes that the company might be eventually be pressured to raise their bid to $3.50 per share. There have been reports suggesting that Softbank was the one who actually wanted to buy Clearwire and was looking to do it through Sprint.

While Sprint and Clearwire currently have a deal in place, taking full control of the latter company would ensure Sprint’s access to all of Clearwire’s spectrum, allowing Sprint to take on their larger competitors like AT&T and Verizon. Will Clearwire reportedly looking for new means of financing, this deal offered by Sprint could be an option, although analysts believe that Clearwire is currently in the position where they can afford to hold out for a higher offer. Since these discussions are said to be private, naturally neither company has offered to comment on it.

Tyler Lee
Categories: Cellphones
Tags: clearwire, softbank, Sprint