After acquiring a controlling stake in the U.S. mobile and fixed wireless broadband communications services provider Clearwire in October 2012, wireless carrier Sprint the following month announced it would buy out the minority of Clearwire shareholders for $2.2 billion. Sprint, the nation’s third-largest telco, this morning has officially confirmed the completion of the transaction, meaning it now has a 100 percent ownership stake in the Bellevue, Washington-headquartered Clearwire…
According to a media release, shareholders approved the transaction at a special meeting of stockholders held on July 8, 2013.
As the deal closed and became effective today, Clearwire’s Class A common stock gets automatically converted into the right to receive $5.00 per share in cash. Moreover, Clearwire’s common stock will no longer be listed for trading on NASDAQ after the close of business on July 9, 2013.
The deal now gives Sprint customers access to Clearwire’s network as it consolidates more than 100MHz of 2.5GHz spectrum that Clearwire has.
Japan’s Softbank, which in October bought a 70 percent stake in Sprint, did not block the transaction although it was initially hesitant about it.
Sprint is hoping to increase its competitiveness and reach with this acquisition.
Leading carriers AT&T and Verizon are in the late stages of 4G LTE deployment and have had the iPhone for years now.
And with Deutsche Telekom-owned T-Mobile USA recently acquiring the nation’s fifth-largest carrier MetroPCS, Sprint needs a wireless wholesaler carrier like Clearwire if it’s to bolster its user base, coverage and technology.