Sprint Increases Their Offer For Clearwire To $2.5 Billion

Posted May 21, 2013

Sprint Nextel Corporation
 has increased their offer for Clearwire today.  Sprint is offering $3.40 per share for the 50% stake in Clearwire that they do not already own.  This is a 14% premium to the previous $2.97 per share that was announced in December.  This values the deal at $2.5 billion now.  Sprint submitted a revised offer to Clearwire’s board, which is now being reviewed.  Clearwire will likely review the new deal on May 30th during a special meeting.

Sprint submitted the new offer after Clearwire shareholders protested that the original offer was too low.  Purchasing Clearwire is essential for Sprint to expand their Long-Term Evolution (LTE) network.  This will make data downloading faster for their smartphones.  Clearwire’s spectrum is similar to what is used by SoftBank in Japan.  SoftBank made a $20.1 billion offer to gain a majority control of Sprint recently.

This isn’t the first time that Sprint increased their offer for Clearwire.  In December 2012, Sprint increased their offer to $2.97 per share for Clearwire stock from $2.90 per share. This increased Sprint’s offer from $2.1 billion to $2.2 billion.