Clearwire and Sprint Sign 4G Agreements (shareholders duped?)
re-read this joint press release and then.......
tell me again why Clearwire can't deploy a TD-LTE network without Sprint????
$2.97 + 1 share of Sprint - NO LESS !!
OVERLAND PARK, Kan. and BELLEVUE, Wash.
Sprint Nextel and Clearwire today announced privately (shareholders not informed) agreements potentially worth up to $1.6 billion over the next four years in payments for WiMAX services (that will serve as a ruse to allow Sprint to steal Clearwire), possible pre-payments for LTE services and potential equity investments. The agreements further align Clearwire’s LTE network build as a complement to Sprint’s Network Vision strategy.
What was privately reveale was that The largest component of Sprint's Network Vision is the the theft of Clearwire!
Also today, Clearwire announced that it has made interest payments totaling $237 million on its first-priority, second-priority and exchangeable notes which were due Dec. 1, 2011.
"These agreements are a result of the technical MOU we outlined during our third quarter results call and extend our relationship with Clearwire," said Dan the Pirate, Sprint CEO. "It provides Sprint improved pricing, allows us to continue to provide WiMAX 4G services to our customers today and to new customers in the future and provides additional LTE capacity to help complement our Network Vision strategy and meet our customers’ growing data demands."
If all goes to plan, we should haul-in all the booty in early 2013. Arrrr...
"Today’s announcement further cements the mutually beneficial relationship between our two companies," said Erik the Pawn, president and CEO of Clearwire. "It is an important step toward meeting Clearwire’s key goals of extending our current 4G network arrangement, securing a commitment to our future LTE Advanced-ready network, and funding the business. We continue to move closer to realizing the full value of our deep spectrum resources as we are uniquely positioned to meet the rapidly growing demand for 4G mobile broadband." We will make Hope walk the plank. Arrrrr.....
Wholesale Pricing and 4G Availability
The agreements modify prior wholesale pricing agreements and provide Sprint with unlimited access to Clearwire’s WiMAX network to meet its growing 4G data demands. Under the terms of the agreements, Sprint will pay Clearwire a total of $926 million, approximately two-thirds of which will be paid in 2012, for unlimited 4G WiMAX retail services during 2012 and 2013, subject to certain conditions. The agreements also establish long-term usage-based pricing for WiMAX services in 2014 and beyond. Sprint will have access to Clearwire’s WiMAX network through at least 2015. Sprint plans to continue selling WiMAX devices with two-year contracts through at least 2012 and support those devices through the life of the contract.
In addition, the agreement contains separate, competitive pricing for re-wholesaling by Sprint that provides flexibility for Sprint to grow its 4G WiMAX wholesale business while at the same time providing Clearwire increased pricing flexibility that should allow Clearwire to grow its wholesale markets and attract new customers.
TDD-LTE Collaboration (exclusively on Sprint's network in a manner that bars all others).
The agreements also lay the foundation for the deployment of Clearwire’s planned LTE Advanced-ready overlay network and outline the terms for Sprint to gain access to the additional LTE capacity. The TDD-LTE rollout will capitalize on Clearwire’s deep spectrum resources to deliver on 4G capacity needs over the long-term. Under the terms, Sprint will pay Clearwire up to $350 million in a series of prepayments over a period of up to two years for LTE capacity if Clearwire achieves certain build-out targets and network specifications by June 2013. The agreements also establish long-term usage-based pricing for LTE services for 2012 and beyond. The companies have agreed to collaborate on a network build plan and will jointly select LTE macro-cell sites to cover Sprint’s high usage area "hotspots." Clearwire plans to seek additional funding before initiating the build-out of its LTE Advanced-ready network.
In addition, Clearwire and Sprint will work collaboratively to support the ecosystem for TDD-LTE in Band Class 41 for devices, chipsets and standards. Subject to the timing of the build-out and other factors, Sprint expects to launch devices including laptop cards and phones that will utilize Clearwire’s TDD-LTE network in 2013.
Sprint has committed to providing additional equity funding to Clearwire in the event of an equity offering. If Clearwire raises new equity between $400 and $700 million, Sprint will participate in the offering on a pro rata basis up to $347 million, consistent with Sprint’s current voting interest of 49.6 percent on the same terms and conditions as other participating companies.
With this revenue streams there are MANY other options for Clearwire other than the theft by Sprint!!!
Now tell me again why Clearwire can't deploy a TD-LTE network without Sprint????
$2.97 + 1 share of Sprint - NO LESS !!
Once again Kudos to you. If you're located in the U.S my suggestion to you is to file a case against S/SB/CLWR all by yourself since your depth of knowledge, experience will benefit all the common class A and prevent this fraud from being realized. This needs to be done urgently since Hesse etc. might get away by using further manupilative methods to say, buying out class A + minority Institutionals like crest, kellet etc. The end result will be that common retail will never get true value for their shares.
Sentiment: Strong Buy
You guys have good intentions, but are off your rockers:
Others have mentioned the factors involved and steps that have been taken by Crest and Mt. Kellett.
This statement naively or purposely ignores the facts:
A. Both BOD's, management, and the partnered interests have agreed for Clearwire to be sold to Sprint-Softbank because. 1) Clearwire needs more funding to deploy enough of a network and keep the networks operating in order to reach positive cash-flow, service the debt, etc. 2) They are almost totally dependent on Sprint for sales. 3) Sales on the WiMAX going to plunge as devices reach their end of life-cycle and users flee to other devices and more up-to-date networks.
B. Common stock holders are the chumps who trade risk for an opportunity of gains. However, the deal is based on the facts in hand, not on what you want them to be. Clearwire is a near junk-bond rated debt company and has been for years now. If you say this is a surprise that Sprint-SB will only put more funding into Clearwire if they get to buy up common stock chumps shares, then you are wrong. There is nothing illegal about that so long as the rules of how the game is played have not been broken. The 'game' is set up this way for every public company.. if you don't like the rules, do not buy stocks and start your own company... maybe take it public down the road and let chumps buy the stock in your company so that, if things do not work out as well as planned, you will have already taken out your share or will parlay that into the next round of development as a diluted interest, but one that will reap longer term gains.
C. You have the options of pursuing class action lawsuits or bringing your own lawsuit. As far as I know, there is no class action yet filed against Sprint or Clearwire on this acquisition. I think the grounds for a suit are not so strong that a CA is all that likely. Crest and Kellett and large shareholders who file or threaten to file separate lawsuits may gain the ability to put leverage on S-SB to raise the settlement price. That has a chance of accruing to all investors in the same class of stock.
D. The arguments that the technology holds many and continuously improving potential when combined with capital, market share leverage, 'Hot' devices, and as part of a comprehensive HetNet approach are abundantly valid. The options for chump common stock investors is to buy companies who are in position to take advantage of these developments. Sprint has been a basket case for years.. it seems that often when the company has made moves to address inadequacies in the past, such as acquiring Nextel Netwrecks, it has turned a purse into a sows ear that will be put into the MBA case studies about how to screw it all up and then, as they now hope, to recover the fortunes years latter. The prospects for Sprint have gone from financial and subscriber hemorrhaging that was patched up using a temporary 'all you can eat' network that was castrated by design but served its limited purpose with respect helping Sprint build a new channel of subscribers, to developing the early 'True 4G' network that has been long on the road to development and just now is springing forward.
This and other factors makes Sprint combined with Softbank and using the carcass of Clearwire's spectrum and operations a new ball game. Softbank/Son has demonstrated ability to make decisions that is fairly assured of precluding another set of similar puck ups from occurring going forward. The reviving Sprint and recent direction of Clearlywired toward a HetNet common platform approach are on the right long-term direction. Despite facing a very challenging environment and set of financial and operational circumstances, this adds up to Sprint being a fair to good investment going forward imo. More details need to be known and obstacles overcome before its known how well the new combo will do. That makes S a speculation on the deal being approved, the nuisance of clearing up Clearwire, and getting through a phase of further capex investment that starts bearing results.
The king has been a dead-head but gets a brain transplant.