Right off the press today - "Sprint has valued Clearwire’s spectrum at $0.21 per MHz-POP. But as per Information Age Economics’ (IAE) estimation, the spectrum should range between $0.40 and $0.70 per MHz-POP."
This comes to $5.65-$9.90 per share just for their spectrum holdings. Stop trying to steal these companies for pennies.
Do you not understand that Clearwire cannot survive on it's own, that it's a failing business and whoever buys it buys not only it's spectrum but it's debt also. That is why the bids are where they are. The spectrum may be worth a lot but they are not buying only the spectrum
Completely wrong analogy as trading in a used car is and always has been a buyers market where the buyer has the upperhand in dictacting the price due to the lack of other buyers and the constant depreciation of the value of cars. As shown from the news today about the coming T-Mobile/MetroPCS merger to be blocked by Paulson & Co the race to aquire more spectrum it is not a buyers market. This is a strong indication that spretrum is a sellers market. The sellers hold all the cards as the buyers are scrambling to gobble up more spectrum. Here is how your analogy works if was a sellers market for used cars (which it has never been):
The salesman said 2k for your trade but you say it is worth 3k and you have 8 other car lots that are willing to pay 3K. You tell the salesman you will take 3.5K as a trade or you will go else where.
The companies looking to aquire spectrum below market value should take a note out of your car salesman analogy and realize by underbidding they could lose the ability to keep up with demand if they either take too long to get a deal done or if another bidder comes along and offers fair/to above fair value for the spectrum. Greed will kill you everytime when you are in a market that everyone wants into. You have to move fast and bold to keep the others from being able to react fast enough.