Sprint CEO Dan Hesse says “the sum of Sprint plus Clearwire is a case where the whole is worth more than the sum of its parts”. By Phil Goldstein.
Sprint Nextel and Clearwire have agreed to a transaction where Sprint will acquire the rest of Clearwire for $2.2bn. The figure is slightly more than the $2.1bn bid Sprint proposed last week.
The deal values Clearwire at $10bn, including net debt and spectrum lease obligations of $5.5bn.
Sprint CEO Dan Hesse said that the deal will give Sprint a stronger spectrum portfolio with radio waves at low (800MHz), medium (1900MHz) and high (2.5GHz) frequencies. Hesse said the deal will allow Sprint to remain competitive in the US wireless industry for years to come and will keep Clearwire’s spectrum portfolio intact. That will allow Sprint to deploy a robust, capacity rich-network, he said.
FierceWireless: Sprint to buy Clearwire for $2.2B; TelecomTV content partner.
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