The blog was written according to Sprint specifications to indicate that we clearwire minority shareholders are danm lucky to get our $2.97 and a pat on the back at the end of Sprint's 2-year campaign to get our spectrum for pennies on the dollar.
Much of the $20 billion softbank is paying for sprint is compensation for softbank being able to profit immensely from sprint's 2 year effort to make buying clearwire for a ridiculous price POSSIBLE for softbank. I guess we owe a debt of gratitude to Lightsquared for being one of the "tools" that Dan Hesse used to lower expectations for clearwire so dramatically.
All in all, there are many ways that someone or some company to "manipulate" the price of a stock down to levels that provide them with immense profits when they can finally extract maximum value from purchasing them...
... in the case of sprint, it was the many $Billions that softbank paid to aquire sprint... over and above sprint's actual value... as a result of sprint being able to deliver clearwire to softbank for an unheard of price.
There are many ways to do battle with this colossus rip-off... via the upcoming class actions... and by voting minority shares against the buyout. Clearwire remains a huge value that needs to remain in play... and every shareholder who isn't intel and comcast has a say in this.
The MF blog doesn't matter so much ... the view that Sprint was sold to SB at a higher value due to ability to acquire Clearwire at a low price is fair. However, if so, then the argument that Sprint is at a higher than market value can be questioned: Sprint is valued at a discount to what they once paid for just Nextel Netwrecks. The reason why both companies are underwater compared to past valuations is because they both have under-performed compared to the progression of the business environment. The Clearwire spectrum has gone down in value despite having put some of it to use more effectively than use of previous generations of wireless technology including Sprint's use of Hybrid Networks equipment prior to development of the OFDM technology RAN. That's because of the results and the relative position that progress in 3G and 4G networks being used by competitors. If Clearwire were analyzed as a 'black box business' it would be determined that they do not have the capital to move forward and are solely dependent on Sprint for survival. That places them at the mercy of Sprint which can be expected to pursue their own rather than Clearwire's interests first and foremost.
This is a 'bad situation' because the results of Clearwire's business model have fallen short. Take away everything else and the business is not able to stand up on its own and that fails to make the cut to move onto the big league playing field.
Long investors have lost because the company has lost. With no white night that will come in to soak up the losses, this leaves only Sprint-Softbank as an alternative that has the scale of plans to make sense out of this mess. That 'sense' is to build to a large enough scale to make money out of the losing proposition. And, of course, build smart rather than brain-dead networks.
not the old business plan. Can the spectrum be parted out for more than S-SB bought it for? The other pertinent point is did S, as the majority shareholder act in good faith, or did it seek subvert CLWR for its benefit. IMO, it is clear Dan has done almost everything possible to cause the value of CLWR stock to plummet. Dan even did this to the detriment of Sprint's pps too. In that regard, it will be interesting to see when SB first approached S... as it pertains to Dan infamously saying he didn't care if CLWR went bk because the power company would keep the lights on during the process...
Let's see if I get this straight? you have been gestating on this board for over two years right? Now during this time you have guided and educated the users of this board with a trajectory that would make Bernie Maddoff look like a saint. Either you are the WORST investor in the history of stocks or you are the biggest idiot in the history of Yahoo. I hope nobody has the misfortune of buying into any of your dillusional takes on this equity. Get off this board and leave these sheeple alone.
Sentiment: Strong Sell
Re Spok, I can confidently say that he definitely is far from being the worst stock investor nor the biggest idiot in Yahoo history whatever that means. Spok's provided a convincing explanation on this previously inexplicable Kabuki theater that the smooth talking Hesse has been directing nearly two years now. His take re Lightsquared shines light on the possibility that a secret verbal agreement had already been baked between Son and Hesse some time ago. If so, this would imply that CLWR's current market value is significantly undervalued. Certainly worth more than the sudden lowball offer of $2.97. Either way, the key element for SB's entry into the US market depends on S's full control of CLWR assets. If push comes to shove, Son will double up on the current offer price.