Sprint Ups Clearwire Bid to $2.2B, Clearwire Agrees
Sprint today announced that it has agreed to acquire Clearwire for $2.2 billion. Sprint initially bid $2.1 billion, or $2.90 per share, last week. Today's bid has been raised to $2.97 per share, which amounts to a $100 million increase in the total bid. Softbank, which is in the process of acquiring a 70% stake in Sprint, indicated last week that it would not approve of a bid higher than $2.97 per share. Sprint already owns 50.45% of Clearwire and is purchasing the remaining 49.55%. Other Clearwire investors, including Comcast and Intel, have agreed to the new terms and Clearwire's board has voted in favor of the acquisition. According to Sprint, the deal will put it in a better position for its LTE 4G plans moving forward, and help it to be a better competitor to AT&T and Verizon Wireless. Clearwire has vast spectrum holdings in the 2.5GHz band. The deal is subject to regulatory approval and is expected to close in the middle of 2013.