I was a long time CLWR holder, but let's face it. You really think Crest and Kellett are looking out for you guys? They'd make money from a BK, investors get screwed either way. CLWR's shares were down because the WiMax bet got #$%$. Time Warner and Google got tired of it and dumped Clearwire for a loss last year and didn't even have to think twice. CLWR is losing $500m a quarter! You can be sitting on gold, but if you can't sell it, it isn't worth #$%$.
They say be careful what you wish for and it’s starting to look like Clearwire’s shareholders may get exactly what they’ve wished. The article seems to indicate SB shareholders want SB-Sprint to give it up on acquiring Clearwire otherwise Crest may derail SB and Sprint’s own merger deal. This means, like I’ve said before, SB-Sprint may pursue partnership with others like Dish and to acquire Leap instead while keeping Clearwire same as before on usage based contract. I think the immediate impact for Clearwire’s shareholders will be a rapid decline on their share price, perhaps back to the same level as before the merger talks which was around $1.50.
Crest and Kellett only have the ability to play the role of deal breaker, not King maker. Out of all the likely players in the world, Softbank is among the most suitable to help the long-struggling Clearwire. LEAP? Are you kidding.. they hardly stand on their own two feet in spectrum and are far from shifting the balance of spectrum or subscribers that must be assembled. When LEAP's partnership with Clearwire was announced it had little impact on the stock for good reason... it does not add up to a change in Clearwire's plight to fund networks and grow to profitability. Crest is a gadfly.. they have capital to invest at near the low water mark and have nothing to lose in the lawsuit except the costs.
Chances for the SB-Sprint deal going through have not changed much. The media are ad slick salesmaggots: they glom onto whatever meat is being devoured and hype it up with headlines.. "Crest to derail Softbank takeover of Sprint." sells page views/print media advertising.
Softbank has run into worse criticism in the past and Son largely ignored it to focus on growing the company: SB acquired Vodafone Japan which had seen a rapid decline in subscribers and the worst customer service ratings in Japan. The debt taken on at the time was greater relative to the size and financial strength of Softbank. Son proved the wisdom of the acquisition by retiring debt over two years ahead of schedule and becoming the third largest operator in Japan while growing profit margins. Son said that he plans to do something similar with Sprint. I see the investor protests in Japan as beingexpected: Softbank is taking over two companies that are in terrible financial shape compared to SB and that will need large capital investment and technical and marketing skills to turn around to become profitable. Nether Sprint or Clearwire are profitable and may never get to be without outside intervention... they are both 'financial basket cases' that might otherwise be heading towards the financial cliff as Verizon and others mount a higher capacity media juggernaut competitive shift.
Hype, hype, hype... hype, hype, hype.. hype that dooty, hype that dooty.
90% chance of SB-Sprint moving forward. Clearwire is bankrupt already without Sprint... do the numbers.
SB share price taking a dive because of the possibility of all these deals being dragged out in US court. This means all their plans are in jeopardy because they may miss the launch window. All this started because of the cheap CLWR offer. They know what to do to get back on track and it would be cheap to up the offer than to have this dragged out or do something else. CLWR spectrum will only get more expensive with time. Furthermore, I would not be surprise if other companies are waiting to see where this goes so they can make their move. Sorry, but if those who are invested in CLWR sell out, there will be other buyers taking up the slack.
More like the share price of CLWR spikes back to where it was trading prior to accepting the offer. The true value of the company is much higher and price will be unlocked. Dish will partner with Clearwire as they wanted to. Didn't you read the quote from Ergen. He won't be doing any deals with Hesse!