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.