Sprint buying Clearwire for $2.2 billion
Sprint will pay $2.2 billion for all of Clearwire and the move puts it in a good position in terms of spectrum and infrastructure
Sprint will be buying 100 percent of Clearwire for $2.2 billion and the move could put the nation's third-largest carrier on a more stable path when it comes to 4G LTE and mobile data networks.
The move was expected, as Sprint offered $2.1 billion a few days ago to purchase the remaining parts of Clearwire it didn't already own. Clearwire had ambitious plans to roll out its 4G WiMax network across the country but it stumbled as the industry moved on to 4G LTE. Still, the deal would give Sprint a lot of valuable spectrum and networking infrastructure.
"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," said Sprint CEO Dan Hesse, in an official statement. "Sprint is uniquely positioned to maximize the value of Clearwire's spectrum and efficiently deploy it to increase Sprint's network capacity. We believe the transaction, particularly when leveraged with our Softbank relationship, is further validation of our strategy of our strategy and allows Sprint to control its network destiny."
Sprint is currently in the process of rolling out 4G LTE but it trails Verizon and AT&T in terms of footprint. The deal for Clearwire will allow it to roll out 4G LTE in more cities, as well as position it for the next generation of mobile data.