Sprint to Wrest Control of Clearwire from Other Investors
Sprint is preparing to regain control over Clearwire without actually acquiring the company. Citing people familiar with Sprint's plans, the Wall Street Journal reports that Sprint is negotiating with Clearwire's other investors in order to regain a majority interest in the company. The deal, if struck, would give Sprint the ability to appoint the entire board of directors overseeing Clearwire. This would give it control of Clearwire by proxy. According to the Journal's sources, gaining control of Clearwire was a condition of winning the $20.1 billion investment from Japanese network operator Softbank, which was announced earlier this week. Terms of the deal between Sprint and Cleawire's other investors, which include companies such as Intel, were not disclosed.
Sprint's WiMax Shutdown May Halt Service for Charities
Sprint plans to deactivate its WiMax network on Nov. 6, but some charities say the change will eliminate internet service for some 300,000 Americans altogether.
Masayoshi Son Would Consider Selling Sprint Spectrum
SoftBank CEO and Sprint Chairman Masayoshi Son indicated he'd be willing to sell some of the company's 2.5GHz spectrum assets to keep Sprint funded. Sprint gained a massive amount of 2.5GHz spectrum holdings when it purchased Clearwire.
SoftBank Invests Another $73 Million in Sprint
SoftBank has purchased yet more shares of Sprint stock, boosting its stake in the company to just over 80%. SoftBank shelled out $73 million for about 16.8 million shares.
Sprint to Cut Headcount and $2.5 Billion in Costs
Sprint is prepared to reduce expenses by as much as $2.5 billion over the next year, reports the Wall Street Journal, and is likely to cut jobs to help it reach that goal. An internal memo sent to staff by CFO Tarek Robbiati obtained by the Journal said the cuts "inevitably will result in job reductions." Sprint had about 31,000 employees as of March.