Flush with Cash from Softbank, Sprint Buys Controlling Share of Clearwire

By Tracey E. Schelmetic October 18, 2012

While rumors of a Sprint acquisition in Clearwire have been swirling for some time now, most industry analysts had assumed that once Sprint agreed to sell 70 percent of itself to Japan's Softbank Corporation, a $20 billion transaction that was announced just last week, those rumors would be put to bed.

They were wrong. Well…mostly wrong.


Image via Shutterstock

In a securities filing today, Sprint announced that it will buy a controlling share in Clearwire, thanks to the cash it plans to pocket from the Softbank deal. The wireless carrier will purchase 31 million Class A shares and approximately 2.7 million Class B shares from Eagle River Holdings, which will leave Sprint hold 50.8 percent of Clearwire. Eagle River is the investment vehicle of Clearwire founder and wireless industry veteran Craig McCaw.

Clearwire provides mobile and fixed wireless broadband communications services to retail and wholesale customers in the U.S., Belgium and Spain. Its shares fell nearly 10 percent in premarket trading today, as the new arrangement appears to have dashed hopes that Sprint would buy the company outright.

Prior to Sprint’s purchase of the additional interest, it already held 48 percent of Clearwire, but since it wasn’t a majority stakeholder, it did not control the company’s board.

This was a risk, given that Sprint has sold service on Clearwire's network and needs access to its smaller partner's big holdings of spectrum rights, the Wall Street Journal noted yesterday.




Edited by Brooke Neuman

TechZone360 Contributor

SHARE THIS ARTICLE
Related Articles

What Auto Tech Looks Like Today

By: Lindsey Patterson    1/23/2017

Every year, an exciting new topic hits the tech industry, and it becomes a lot of what they talk about. This year, the focus has been on artificial in…

Read More

Sinch's Evangelist Talks AI, APIs and More

By: Paula Bernier    1/23/2017

Christian Jensen is chief evangelist of Sinch, a cloud-based, mobile communications platform that makes it easy to add IM, SMS, verification, video, a…

Read More

SoftBank OneWeb Satellite Investment Makes Sprint Interesting

By: Doug Mohney    1/23/2017

While OneWeb is bringing new investment and more jobs into America as it builds a mega constellation of low-flying satellites for worldwide broadband …

Read More

Avaya Files Chapter 11, Plans Restructuring

By: Steve Anderson    1/20/2017

Avaya turns to Chapter 11 bankruptcy in a bid to make some key changes and attempt to recover for the future.

Read More

Reports of the Death of the Deskphone are Premature; Allworx Says We're on the Verge of a Deskphone Revolution

By: Erik Linask    1/19/2017

We've heard commentary about the death of the deskphone for several years now. Yet, if you look on most corporate desktops, you'll still find one. The…

Read More