Earlier today, Sprint (NYSE: S) announced they have entered into a definitive agreement to acquire the remaining shares of Clearwire (NASDAQ: CLWR). Sprint will pay $2.97 per share, which represents approximately $2.2 billion out of pocket. The market cap. for Clearwire is currently about $2 billion where as Sprint is closer to $16.5 billion
The combination of their spectrums will provide Sprint with an enhanced portfolio that will strengthen its position and increase competitiveness in the US. The Sprint CEO, Dan Hesse, said “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.”
Clearwire Corporation, through its subsidiaries, provides fourth generation wireless broadband services in the United States. The company builds and operates mobile broadband networks that offer high-speed mobile Internet and residential Internet access services. It serves retail customers through its CLEAR brand.
The Clearwire 4G mobile broadband network covers more than 130 million people in the U.S. including 35 of the top 40 U.S. markets. Recent projections estimate that global mobile data traffic will nearly double annually through 2015. Today they are working to deploy the first wide-channel TDD-LTE 4G network in the U.S. – a network that will have the speed and capacity to outperform anything else in the market.
In 2011 Clearwire was one of the fastest growing companies in the wireless industry. As of October 25, 2012, it had 1.4 million retail subscribers and 9.1 million wholesale subscribers. As of October of this year, Clearwire Corporation operated as s subsidiary of Sprint Nextel Corp.