Sprint/Clearwire Acquisition Discussion (Formerly: Dish offer to acquire Clearwire for $4.40 per share in cash.)

[MacinJosh]

Someone needs to deal with that man before I get tranquilizer darts and get him and torture him myself.

 

 

Sent from Josh's iPhone 5 using Tapatalk 2

[utiz4321]

This makes sense if Dish is doubting it's chances of obtaining Sprint (likely). The logic for Dish is that it desperately needs a wireless infrastructure. It has only two reasonable choices Sprint or Clearwire. The purchase of Clearwire gives Dish a spot at the bargaining table and cell towers for at most 3 Billion. I'm sure the first choice would be an agreement with Sprint similar to lightsquared. However Sprint is in a much better position now with no incentive for a hosting agreement for what would essentially be another competitor.

If dish gains all of the minority shares they would still be a minority share holder faced with all the same restrictions that the current minority share holders face (best case). They would not gain clear or its network, this is what doesn't make sense. I think the chances of clear going bankrupt are really high if dish is successful, in a biding process and newly capitalized sprint (which seems to have the highest value for the 2.6 ) should be able to win a large chuck of the spectrum easily and possible cheaper than 3.4 per share + debt. Dish is unlikely to bid on the spectrum (at least as high as sprint would) because they would be in the same spot, spectrum and no network. Verizon might want to bid but given their current spectrum portfolio I can't see it being as valuable to them as sprint. AT&T might be the real threat, but I think sprint might let bankruptcy happen. If sprint continues to fund clear where does that leave dish? In a dead stock and still no network while sprint has clear deploy their "hotspot" tdd-lte network. It is still a mess and I can't see dish walking away improved.

[kvnjcby]

Oh man. I really don't like this!

 

I'm under the impression that Sprint *needs* control of Clearwire -- it gives them a huge advantage. Assuming that shareholders are now in favor of Dish once again, this only leaves Sprint with 2 options: vastly increase their offer yet again, or surrender Clearwire to Dish, merge with Dish, and acquire Clearwire's assets by way of that.

 

Obviously, the second option is what Dish is trying to force Sprint into. I'm very interested (and worried!) to see how Sprint plays Charlie's game. He's a good player.

[khammondnm]

Oh man. I really don't like this!

 

I'm under the impression that Sprint *needs* control of Clearwire -- it gives them a huge advantage. Assuming that shareholders are now in favor of Dish once again, this only leaves Sprint with 2 options: vastly increase their offer yet again, or surrender Clearwire to Dish, merge with Dish, and acquire Clearwire's assets by way of that.

 

Obviously, the second option is what Dish is trying to force Sprint into. I'm very interested (and worried!) to see how Sprint plays Charlie's game. He's a good player.

 

you forget that Sprint still owns more than half of Clearwire.

 

Sent from my SPH-L900 using Tapatalk 2

 

 

[IamMrFamous07]

Man this whole thing is giving me a headache. I guess we shall see Friday how this will turn out. I plan to not look at the blogs tomorrow lol

[Substantive]

 

 

EEERRRRRRRGGGGEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEEN!!

[Mobilesolutions]

DISH should cut the crap,they cannot control sprint/clear. They may be able to lease a few mhz of spectrum.

[IamMrFamous07]

But since Clearwire has urged to make the minority shareholders to vote for sprint I don't see them rescheduling the vote. This going to be interesting and I hope dish/sprint/SoftBank somehow make a super network that can take down the big red and blue *grabs popcorn*

[Yuhfhrh]

I'm tired of this. Softbank/Sprint/Clearwire is the only future I can see Sprint becoming a major competitor. All I can see dish doing is ruining Sprint and wasting spectrum on mobile video.

[WiWavelength]

Someone needs to deal with that man before I get tranquilizer darts and get him and torture him myself.

 

Yes!  That's awesome!  You're crazy, man.  You're crazy.

 

 

AJ

[dstar2002]

It's a game. Nothing more, nothing less. If they won the shares, they would just try to flip it for cash or partnership for their own network.

 

If Dish was smart (which they arent), they would focus on making a product with the charlie vision, that they can sell off. Problem is, he wants total control.

 

Dish is a crap company. I would leave sprint if dish took it over. I have lived and heard too many dish horror stories to want to go down that road again.

 

Sent from my Galaxy S3

 

 

[bigsnake49]

At some point or another Sprint/Softbank should let him have Clearwire. Maybe not at $4.40 but at $6.00 because they stand to make a good amount of money, plus they get rid of Clearwire's debt. Sprint can take that money, bid for PCS H and then roll up T-Mobile.

[IamMrFamous07]

Isn't sprint/SoftBank trying to get TD LTE on the 600 MHz? So is Clearwire really worth it? Maybe sprint can just acquire all of US cell and deploy TD lte on some of its spectrum

[S4GRU]

Since there seems to be no limit to what Charlie Ergen will pay, I'm thinking this is a good course of action:

 

Sprint ups its offer for Clearwire to $5.40. Then Charlie will up his to $6 or $6.40. Then Sprint allows Charlie to over pay at the final price and take it's minority ownership in Clearwire. Sprint still buys out the Intel, Bright House, Comcast stocks that they have already agreed to sell to Sprint.

 

Charlie Ergen then grossly overpaid for his minority stake and leveraged his company to do it. Sprint will still have majority control over the company. Then come November 30th, the shareholders vote to change to a simple majority for purchase. Softbank offers to buy the whole thing out, Sprint votes in favor...Charlie is screwed.

 

I'm no financial guru, and do not understand all the implications. This may not be possible. But if it is, this is what I would do. It backs Charlie into a corner that he cannot do anything with.

 

Otherwise, the only other options is for Sprint just to stand down, let Dish buy a minority stake in Clearwire and then deal with the devil...or, have SoftBank make an offer for Dish. I kind of hope for the latter just so Charlie could get a taste of his own medicine and be put on defense for once and distract him from an offensive.

 

Robert via Nexus 7 using Tapatalk 4 Beta

 

[WiWavelength]

Maybe sprint can just acquire all of US cell and deploy TD lte on some of its spectrum

Nope. USCC does not hold any TDD spectrum. Besides, USCC has a footprint in just a few corners of the country. Not that much...

 

AJ

[JeffDTD]

All this money being blown... substantial buildout , device development , etc is still needed for clear's assets to be put to good use. I would love to know how charlie envisions that playing out when he has no majority control of the company. Separating clear's assets from sprint's infrastructure and spectrum reduces their value. Further, a hosting deal between sprint and dish as a minority owner would still require a separate financial agreement.

 

Sent from my Note II. Its so big.

 

 

[jroepcke51]

Yes!  That's awesome!  You're crazy, man.  You're crazy.

 

 

AJ

That escalated quickly.  I mean that got out of hand fast...

 

[cletus]

All this means to Sprint customers is more delay on buildout of an advanced network. I don't think anyone really thinks Clearwire is doing much in the way of upgrades to its network right now after already publicly scaling back the planned rollout.

 

At least under the control of Sprint/Softbank Clearwire would have a unified direction. If Dish is wanting to offer its subscribers mobile video then why pick the carrier with the most expensive rollout, with the least coverage, with the worst spectrum for it? Why not just pay this money for like a 10 year agreement with T-Mobile to host it's network? Oh right Charlie Ergen just wants to have control. 

[ChadBroChillz]

Looks like the vote has been postponed 

 

http://www.reuters.com/article/2013/05/30/us-clearwire-dish-sprint-idUSBRE94T0G420130530

[WiWavelength]

If Dish is wanting to offer its subscribers mobile video then why pick the carrier with the most expensive rollout, with the least coverage, with the worst spectrum for it? Why not just pay this money for like a 10 year agreement with T-Mobile to host it's network?

 

Clearwire's BRS/EBS 2600 MHz spectrum is not the "worst" for mobile video.  In many ways, it is the best spectrum for mobile video -- especially, if we are talking time shifting, on demand mobile video.  That takes massive capacity, hence massive bandwidth.  And only BRS/EBS offers that kind of available bandwidth.

 

As for T-Mobile, its racks are typically rather full with three panels right now.  So, T-Mobile does not look to be in good position to host another operator.

 

Honestly, I wonder if Ergen is making all ruckus in an attempt to twist Sprint's arm into a hosting agreement for Dish's existing spectrum, letting Dish take a minority position in Clearwire and use its excess spectrum.  Then, Charlie calls off the dogs.

 

AJ

[miguell2]

If that is true that makes even less sense (and I don't doubt that it is true, I just haven't read that yet) since dish would gain clear if their sprint bid is accepted at a lower price if clear was to accept sprint's bid. If dish fails in it's sprint bid all they end up with is a minority position in a company that has a good chance of going bankrupt and seeing sprint trying to pick up spectrum in a post bankrupt fire sell. I am seriously have trouble with just the logic of this move.

I think that might be their move, destroy Clear and pick up the pieces in the cheap... 

[bigsnake49]

Clearwire's BRS/EBS 2600 MHz spectrum is not the "worst" for mobile video.  In many ways, it is the best spectrum for mobile video -- especially, if we are talking time shifting, on demand mobile video.  That takes massive capacity, hence massive bandwidth.  And only BRS/EBS offers that kind of available bandwidth.

 

As for T-Mobile, its racks are typically rather full with three panels right now.  So, T-Mobile does not look to be in good position to host another operator.

 

Honestly, I wonder if Ergen is making all ruckus in an attempt to twist Sprint's arm into a hosting agreement for Dish's existing spectrum, letting Dish take a minority position in Clearwire and use its excess spectrum.  Then, Charlie calls off the dogs.

 

AJ

I'm not sure that Dish wants it for mobile video necessarily. I think they want it for fixed broadband, fixed VOD and OTT. I would rather that Sprint took the money and ran particularly if they get the price that Dish is willng to pay to $5 or $6. I know I sound like a broken record, but there are better frequencies for mobile broadband.

[ericdabbs]

I'm not sure that Dish wants it for mobile video necessarily. I think they want it for fixed broadband, fixed VOD and OTT. I would rather that Sprint took the money and ran particularly if they get the price that Dish is willng to pay to $5 or $6. I know I sound like a broken record, but there are better frequencies for mobile broadband.

 

Where are you going  to find these "better" frequencies?  The only upcoming spectrum auctions in the next few years are the PCS H block, AWS-3 block, possibly 600 MHz and possibly some other one from 1695-1710 Mhz (FCC still looking for paired 15 MHz of downlink spectrum). 

 

I would like Sprint to dip into the AWS pool since most of the other major carriers are supporting it but I think its going to be hard to convince Son to drop 2.5 GHz completely since he has a TD-LTE ecosystem built in Japan already.

[bigsnake49]

Where are you going  to find these "better" frequencies?  The only upcoming spectrum auctions in the next few years are the PCS H block, AWS-3 block, possibly 600 MHz and possibly some other one from 1695-1710 Mhz (FCC still looking for paired 15 MHz of downlink spectrum). 

 

I would like Sprint to dip into the AWS pool since most of the other major carriers are supporting it but I think its going to be hard to convince Son to drop 2.5 GHz completely since he has a TD-LTE ecosystem built in Japan already.

 

There is a rich source of AWS frequencies as well as PCS. It's called T-Mobile. While they're at it it, they might as well roll up USCC and Leap.

[Fraydog]

There is a rich source of AWS frequencies as well as PCS. It's called T-Mobile. While they're at it it, they might as well roll up USCC and Leap.

 

My only concern is that I'm fearful that if we go down to three providers in the US, that we become Canada South. There's also a good chance Son could kiss CDMA2000 goodbye as the primary voice transmission if SoftBank also aquires T-Mobile and rolls it into Sprint. Son wants his device ecosystem and T-Mobile would move SoftBank closer to that.