Sprint announced today that it will acquire 100 percent ownership of Clearwire. The wireless carrier will buy the 50 percent stake in the company that it does not already own for $2.97 a share. The $2.2 billion transaction boosts the value of Clearwire to $10 billion.
Sprint makes it clear in its press release that Sprint wants unfettered access to Clearwire’s valuable spectrum resources. Sprint CEO Dan Hesse writes in the company’s press release,
“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.”
As part of the deal, Clearwire will get an additional $800 million in financing from the sale of exchangeable notes. The transaction was approved by Clearwire’s Board of Directors after a special committee evaluated the deal and gave it their unanimous approval. SoftBank also agreed to the deal. The carrier now must receive regulatory approval and the approval from a majority of Clearwire stockholders who are not affiliated with Sprint or SoftBank.