Clearwire Investor Wants FCC to Block Sprint Sale
Crest Financial, an investment firm that owns about 8% of Clearwire, plans to ask the Federal Communications Commission to prevent Sprint from acquiring the remainder of the troubled mobile broadband company. Sprint owns just over 50% and is looking to acquire the remaining 49%. At issue is the price offered by Sprint for Clearwire. Sprint bid $2.97 per share for a total of about $2.2 billion. Crest believes the per-share price offered by Sprint "grossly undervalues Clearwire" and its spectrum holdings. Crest plans to argue to the FCC that by undervaluing Clearwire's spectrum, it could result in lost revenue for the government in future spectrum sales. "The merger is therefore a bad deal all around for Clearwire shareholders and also for the public at large," said Dave Schumacher, a lawyer for Crest. Crest has already filed a separate lawsuit seeking to block the sale to Sprint. Crest is also hoping to prevent Comcast, Intel, and Bright House Networks, which combined own 13% of Clearwire, from voting on the deal due to their close business ties with Sprint. The deal needs federal approval and the approval of both Sprint's and Clearwire's boards.
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.
Sprint to Skip 600MHz Incentive Auction
Sprint today said it will not participate in the 600MHz reverse auction planned for next year. The company believes its spectrum position is "sufficient to provide its current and future customers great network coverage." Sprint owns significant amounts of spectrum, but much of it is concentrated in the 2.5GHz range.
Sprint Touts Network Progress
Sprint today offered a snapshot of the progress it has made deploying LTE around the country. According to its fourth quarter earnings, Sprint's LTE network now reaches 270 million POPs, up from 260 million in the previous quarter.
Sprint Settles Lawsuit Over Nextel Merger for $131 Million
Sprint today settled a class-action lawsuit regarding its 2005 acquisition of Nextel for $131 million. Investors claim Sprint executives defrauded shareholders by inflating stock and bond prices after Sprint closed its acquisition of Nextel.