Clearwire announced that it has declined to take Sprint’s financing offer; an offer that was worth up to $800 million.
The reason is because Clearwire wants to keep its options open. The company is still considering DISH Network’s bid of $5.15 billion, which is more than twice as much what Sprint’s offering. DISH said that if Clearwire took up Sprint’s financing offer, it would retract its bid immediately.
DISH Network’s bid may be a lot more than Sprint’s, but Sprint would be the wiser choice in terms of stability for Clearwire. Sprint already owns 51% of their company and has worked with them for many years.
However, with a tempting bid like DISH’s, it’s understandable why Clearwire is hesitant to pull the trigger. DISH is being persistent in stealing Clearwire away from Sprint. It plans on utilizing Clearwire’s spectrum in order to create a 5th major carrier in the U.S.
But Sprint won’t back down easily either because the acquisition of Clearwire is all part of Sprint’s goal of becoming the #2 carrier in the U.S.
Despite still considering DISH’s bid, Clearwire seems to still be pushing its shareholders to choose Sprint’s bid. Sprint stated,
“Clearwire’s proxy makes very clear that Sprint’s definitive agreement to acquire Clearwire provides both the best value for shareholders and stability amid an uncertain future.”
Whatever happens, it looks like all three of these companies are in for a ride, and only something good can come out of it for the consumers.