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Clearwire Corporation (CLWRD) Message Board

  • sselyapu sselyapu Jun 21, 2013 10:02 AM Flag

    Charlie backing down...he has a deal with Sprint

    It has to be that he got a deal with Sprint by standing down.

    Sentiment: Hold

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    • If he had a deal, Sprint would not have had to put in the fail safes into both merger agreements( theirs with soft bank and with Clearwire). Dish is going to move on to Tmobile.

      • 1 Reply to georgiafan21
      • They weren't really fail safes. Ergen could have bid for both Sprint and Clearwire if he wanted. The only issue besides raising the bid was the breakup fee. The litigation was already on and even a unanimous Clearwire board believed Ergen was right. If Ergen won, there would be no breakup fee. If he was outbid, he wouldn't be responsible for the breakup fee. Ergen knows both Sprint for Clearwire, and Softbank for Sprint would have gone higher to overbid another offer from him. He didn't raise the ante because Son told him he would have the network share deal he wants.

    • It makes sense. He waited until SB had control so Son could cement the deal. I bet Ergen agreed to stand down from Sprint, Clearwire, and tmobile in the future to keep the acquisition price down. If Son wants to be number one, he needs Ergens AWS spectrum for millions of new phones. Clearwire Spectrum can carry the data. He also could use Charlie selling to his 30 million DISH customers on the Sprint network like LEAP does to build revenues and better utilize the spectrum capacity. I bet Ergen buys LEAP to advance his Sprint based wireless plan. Maybe he even buys ELNK for his wireless Internet access business infrastructure and the EarthLink customer base.