Dish outbids Sprint, makes massive $5.5 billion offer for Clearwire
Dish has made a surprise offer to purchase Clearwire out from under Sprint
Dish Network has made a massive $5.5 billion offer for Clearwire and its 4G LTE spectrum holdings. The big move comes just one month after Clearwire agreed to be fully acquired by Sprint for $2.2 billion.
Dish has bid $3.30 per share for all outstanding shares in Clearwire. Sprint, for its part, had agreed to acquire Clearwire for $2.97 per share, giving Clearwire a value of around $10 billion dollars.
Clearwire, in a statement released Tuesday afternoon, confirmed the news, saying it was obligated to discuss the offer with Dish. Sprint still has yet to make a comment on the bid, but I can only imagine they are extremely displeased.
For those in the dark here, Clearwire provides 4G LTE services to wireless operators in select markets throughout the United States. The company won approval in November to build its own 4G LTE network from the FCC. The company's spectrum holdings were to be a central part of Sprint's 4G LTE network.
So, will Clearwire accept the Dish offer? It's too early to tell, but it isn't likely. The company would probably have to pay a big penalty to get out of the deal with Sprint, a penalty that would likely cost it quite a bit of cash. Obviously, though, anything could happen, so we'll make sure to stay tuned.
Clearwire's stock price jumped by $.02 as news of the offer surfaced Tuesday.
Source: The Verge